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When I was a kid, my grandfather gave me some collectible items, which at the time were worthless.

Many years later, this stuff is actually worth a few thousand dollars. If I sell this stuff on eBay, what would my tax liability be?

I know beyond a certain amount, eBay reports you to the IRS so I would assume I'd have to pay tax. The question is, how do I calculate the cost basis?

These items were worth close to nothing when given to me, but they were more of a gift at the time and not so much an inheritance. So if I were to sell them for, say, $5000 I would have to declare the entire amount as income?

Chris W. Rea
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NoCarrier
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1 Answers1

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Short answer: Yes.

First of all, it doesn't sound like you owe any inheritance or gift tax. From your description, the items were clearly below the $13,000 limit (2009 and after) that can be gifted. (The exact amount of the limit will be different for you since it sounds like the gifting took place before 2009.)

As far as tax liability, it would be just the gains: The sale value minus the "basis" (similar to purchase price). This is described in the page I previously linked to in the "What if I sell property given to me?" section.

Stainsor
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