Cost Base Question

[Sdot]

I’ve been familiarizing myself with the approximate values of a decent size handful of particular cards that I’m targeting for acquisition, and I’ve downloaded a few apps for tracking my “collection” (may be bit of an overstatement as I probably only have about 10 cards right now) and it’s current value. For example the “sports cards pro” app… it shows you what you paid and how much they’re worth today…

Generally speaking when tracking the value of your portfolio, do you include shipping costs in your purchase price? I find especially being that I live in Canada shipping costs about $15-$20 per card on cards that are worth as little $5-$10 for example. So I’ll be under water on almost every card that I buy if I’m to include shipping expenses in my cost base, unless I can buy a card far enough below market value to minimize or offset these shipping costs. Which seems almost impossible since most decent looking ungraded cards are often priced 3-4x market vakue… I assume because of the potential to have the card grade out well.

Just wondering what best practice is… or if anyone has thoughts on this subject.

Thanks!

 

[cjay101]

My advice is collect to collect. Investing in cards is almost always a losing proposition

 

[cardmonster]

I agree with cjay101 that cards should be a hobby, but also realize that cards can cost a substantial amount of money and therefore need to detail amount spent on those cards. Anyone in United States who sells $600 or more will now receive 1099, so there is more of a need to track costs for tax purposes.

Yes. Shipping, taxes and custom costs should be factored into your basis.

 

[Boots]

With all due respect, I suggest that you contact a tax professional.

 

[Sdot]

I agree with cjay101 that cards should be a hobby, but also realize that cards can cost a substantial amount of money and therefore need to detail amount spent on those cards. Anyone in United States who sells $600 or more will now receive 1099, so there is more of a need to track costs for tax purposes.

Yes. Shipping, taxes and custom costs should be factored into your basis.

Thanks that’s what I was wondering. I’m not interested in getting into this as a means to generate income. I was thinking about it more like collecting art. I just think that its interesting to track the value of the collection over time. My long term plan is to give the whole collection to my son one day.