Level 2

Question

Client sold baseball card collection

Forum|Forum|1 year ago
March 19, 2025
3 replies
19 views

So, client sold a baseball collection he'd been building since he was a kid. He'd never listed it as an asset previously, but he knew what he'd spent on it and had sold it at a substantial loss (financial hardship). I'm a bit unsure how to report this - I've got it on his Schedule D at the moment, since he received a 1099K for the proceeds of the sale. Just not sure if there's a better way/looking for confirmation that I've reported it correctly. Thanks!

Individual

This topic has been closed for replies.

abctax55

Level 15

So.... he's had 'em since he was a kid and he has a LOSS ???

You imply he's an adult now.

I doubt, very strongly doubt, that there is loss.

AND, bonus question, what would the tax rate be?

HumanKind... Be Both

R

ryanwfrederickAuthor

Level 2

Well, he hasn't had them *all* since he was a kid. He's been an avid collector in recent years as well. It's just a thing he's accumulated over time. I don't doubt that overall he showed a loss - it was a big collection, and considering the size it didn't sell for much by my reckoning (I'm no expert in baseball cards, though). All I really have to work with at the moment is the 1099K and his statement as to what he spent on it (he has a spreadsheet showing it). He's solidly in the 22% bracket for 2024, filing single.

abctax55

Level 15

He's solidly in the 22% bracket for 2024.

Suggest you research 'Collectibles' and the taxation of them.

At least for the ones that do show a gain.

HumanKind... Be Both

BobKamman

Level 15

The ones he bought as a kid may have gone up in value and should be reported on Schedule D as a capital gain. The ones he bought more recently may have resulted in a loss, which is not deductible because they are personal items, not investments. (If they had been investments, he would have been keeping better records.)

EDITED: I posted this before seeing your reference to a spreadsheet. So which is it? He doesn't know how much of a loss he has, or he has exact records? And the problem is that with a bulk sale, he didn't break down the proceeds per item.

R

ryanwfrederickAuthor

Level 2

That's the main issue - he has a good grasp on what most of them cost, but he sold them as a group, not individually.

BobKamman

Level 15

I would add up the total cost of those he knows, using zero for those he doesn't, and divide that into the proceeds. Then prorate. For example, $10,000 cost and $8,000 proceeds, the basis for everything is 80% of cost. Then decide if you want to call the losers "investments" or "childish pleasures."

BobKamman

Level 15

There's a place at the top of Schedule 1 "For 2024, enter the amount reported to you on Form(s) 1099-K that was included in error or for personal items sold at a loss." Not sure how to get there with the software, I haven't had to use it yet.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded