Let me start with an obligatory apology… I very rarely comment on forums and so I apologize if this post is in the wrong section.
I recently got some cards back from PSA (Good times, good times were had by all) and was fortunate enough to add a couple of them to my PC. The others, I considered selling via auction… and I’m sure like many of you prudent taxpayers, my first thought was “what will my tax liability be as a result of these sales?”. An example of my understanding:
Sale Price: 500
(less) Cost of Card: (100)
(less) Cost of Grading, including fees: (35)
(less) Selling Fees: (50)
Total (Costs): (185)
Net Profit: 315
In this example my tax liability would be assessed against the 315, instead of the full sales price of 500. However, what’s ambiguous to me is the ‘Cost of Card’ calculation when you pulled the card from a pack.
To be more specific for my given situation. I opened 7 packs of Japanese Team Rocket (Rocket Gang) packs a couple years ago. As many of you know, these packs have a guaranteed holo, and the holo essentially holds the vast majority of the “value” from the pack. For the ‘Cost of Card’ calculation here, would I be forced to evenly distribute the cost of the pack to all ten cards inside (e.g. pack cost $100, so each card has an effective cost of $10), or can I assume/absorb the entire cost of the pack into one card, understanding that if I were to sell the other cards from that pack down the road, I would not be able to associate a ‘Cost of Card’ figure for those cards?
I hope this question makes sense. Thank you for whatever help or insight any of you can provide.
