You can’t really just broad strokes apply a ratio to the cards in the set. Every card is different w different availability and populations so it’s best to just look at recent sold prices of particular grades. That being said, I would assume the ratio would be larger than 2:1, probably closer to 3:1 but that ratio could change over time. Feel free to use the pokemonprice.com tool to look at the price history, but remember a lot of those prices aren’t entirely accurate like for best offers accepted and whatnot.
A Zard in UK recently ended over $30k. A Blastoise over $10k. There are a couple of WTB threads too where you can get an idea about prices for other card. I think someone offered $1500 for Gyarados, $2000 for Mewtwo. As for the ratio, I think it’s impossible to say and prices seem to change (rise) every day
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Correct
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No problem. For the record, I think it’s dope that you’re sharing this hobby with your son, but if we’re taking sentimental feelings, biases, personal interests out of the equation… then yes selling to one person over the other literally has a drastically different effect on the overall hobby and market. It isn’t that one buyer should feel more entitled than another. It’s just cold hard statistics, cause and effects.
Updating tonight. Just based on recorded sales, over $500k.
But realistically:
- 12 of the 16 holos haven’t transacted in October…
- 9 out of 16 for months.
- Most of the rares haven’t transacted in quite some time.
- Whew…
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@jonandek, I always wondered about this, but is the 28% just a federal max or is there state tax for capital gains added on to the 28% too. Also, how do you report the original purchase price on collectibles that were purchased years ago without receipts/records anymore? Do people do an estimated market value to determine the card’s original price or is documentation required?
Best estimate cost basis.
Yes state tax… State always wants their share.
Don’t forget the federal 3.8% added cap gain tax over $250k threshold. Also added for short term cap gain.
Get to a CPA in advance to help plan.
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what modernrocket said… complicated. And don’t get your tax advice from these forums.
But you should definitely be factoring taxes into any selling decision, especially as the dollars get larger. Any alternate uses of the capital you get from selling the collectible should be considered on an after-tax basis.
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And one just sold for 3k
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Be careful about taxes, and definitely talk to a pro. But understand that even a pro may struggle a bit with your specific situations, given how crazy the market has been.
To elaborate on 3 key points, at least in the US:
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if you are selling cards, and you are selling retail, you may find yourself with an enormous (5%, 6%, 7% or more) state sales tax liability. It depends on where you live and where you are selling. Ebay may collect these taxes on your behalf. Retail stores are completely used to collecting these as well. Freelancers, especially those who work in a cash or crypto world, usually don’t collect anything.
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You need to decide if you are going the “Collector” route or the “Professional Sales” route. Each has potential benefits. Each has its own set of record keeping and reporting requirements. In general, if you are running a business you have more potential write-offs but you need to pay self employment taxes (~ 14%) on your net earnings. This is in addition to any income taxes you may ultimately owe, although if you are self employed the tax treatment on earnings is pretty good until you make more than $400k - $500k (depends to some extent on deductions). If you are a collector selling your collection, and if you had your cards for more than a year, then you get long-term Capital Gains rates.
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Regardless of which mode you are working in, if you are selling throughout the year and making (reportable) money doing it, you have a quarterly tax liability at both the Federal and State (if they have income taxes) level. If you haven’t been paying estimated quarterly taxes you may get whacked with interest and penalties for late tax payments. It depends a lot on the level of income you report and what other regular income you have.
There are a ton of nuances to determine which is appropriate for you.
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Is this in regards to only selling on ebay? Lets say I use PWCC and my psa 1 chorizord sells for 50k. Do I now owe taxes on that or is it just through ebay that you are slapped with the 28% tax? Obviously yes, I should seek out professionals and not ask for tax advice here, but I am curious. Not planning on selling anything now, just thinking about potential scenarios and the inner workings of selling cards because it lets me dream lol.
It’s really simple.
If you make a profit you are required by law to pay taxes to federal/country and state/province/other no matter how the transaction is conducted. You are not required to report losses. If you choose to not pay your tax obligation you will potentially receive the appropriate consequences.
Consult a CPA if you are uncomfortable with your own research.
This is a very informed answer. This topic deserves its own pinned thread since it shows up so often in other random topics. Not it!
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I don’t want to hijack this very informative thread, so perhaps a mod can move these “tax” discussions to a dedicated thread.
My understanding is that Ebay will often charge sales tax on transactions. This should be reflected in an annual statement from Ebay, or in some dashboard document.
Ebay will also report (to the IRS or other country equivalents) the yearly amount of your sales transactions, once they exceed some annual threshold. I think Paypal does this, and I would assume that all major auction houses do as well. In the US this will often be reflected in a 1099 tax form. In addition, every transaction of $10K+ that goes through any financial institution is reported to the IRS. My bank (TD Bank) reports even smaller amounts if they are cash. This includes checks, wire transfers, and cash deposits. Banks will often report any series of transactions (like $2k per day for a week) that approach these limits.
So the government typically knows your income from large transactions. Outside the US this may be used to confirm you have paid appropriate VAT. Inside the US it is used as a guide vs. how much “revenue” or “income” you report. But not all this incoming money is taxable. The IRS doesn’t know what your cost basis is (if you are claiming capital gains as a collectible) or what your direct and indirect costs of doing business are (if you claiming to be a business). But it alerts the government to expect a tax return from you where you describe how much of that revenue is taxable, and your documentation to support any of the income that isn’t taxable.
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www.benzinga.com/node/17968855
Looks like Collectibles Guru sold his box for $375k
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$375k is about what I was expecting. I was already aware of offers being made for at least $300k that were rejected.
But wow… $375k. It’s really something.
These boxes weren’t much over $50k about a year ago.
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“Camillo believes there are only 40 to 70 unopened boxes of 1999 1st Edition Pokémon cards and a small handful of owners willing to part with the boxes. The price is going up and he believes scarcity will catch up.”
If I’m reading it correctly, he’s the one that bought @375k
Welp cheers to another 10%+ on 1st ed base set after the word spreads. Crazy
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No CG was part of a three man investment team that sold it to Camilo, according to the article