ANALYSIS: 2nd All-Time Finest 1955 Topps Baseball PSA Set Auction
Basilone
Posts: 2,492 ✭✭
Greetings Board Members:
I am surprised no one has made mention of...........
This past week (8/14/03) the 2nd All-Time Finest 1955 Topps Set was auctioned by SportsCards Plus. Each card in the set was listed as its own separate lot (206 unique items).
I consider this auction....the most important individual card by card breakup in the short history of the Set Registry. Other notable registered set individual card auctions would include SkyLaneFlyer's 1967 set that was auctioned by Superior Sports on 12/6/02 and Mastro's 1965 Topps eBay auction on 4/19/03 (both #1 All-Time Sets for their respective issues).
Some notes about the set:
100% complete in PSA 8 or better
8.35 Weighted GPA
Set included 1 PSA 10, 1 PSA 9OC, 63 PSA 9s, and 141 PSA 8s.
Note: cards #175,186,203,209 were never issued
The Results:
Total SMR: $94,750.00
Price Realized (includes Buyers Premium): $168,996.95
Price Realized as a % of SMR = 178.36%
I have constructed a spreadsheet detailing each lot ( Grade, POP, SMR, Price Realized).
The spreadsheet can be found here: 1955 Topps 2nd All-Time Finest Set Auction
For those members who have Excel and wish to obtain a copy in Excel format (to sort the numbers, etc.)....shoot me an email at
Hobby Regards,
John Basilone
edited: title of thread
I am surprised no one has made mention of...........
This past week (8/14/03) the 2nd All-Time Finest 1955 Topps Set was auctioned by SportsCards Plus. Each card in the set was listed as its own separate lot (206 unique items).
I consider this auction....the most important individual card by card breakup in the short history of the Set Registry. Other notable registered set individual card auctions would include SkyLaneFlyer's 1967 set that was auctioned by Superior Sports on 12/6/02 and Mastro's 1965 Topps eBay auction on 4/19/03 (both #1 All-Time Sets for their respective issues).
Some notes about the set:
100% complete in PSA 8 or better
8.35 Weighted GPA
Set included 1 PSA 10, 1 PSA 9OC, 63 PSA 9s, and 141 PSA 8s.
Note: cards #175,186,203,209 were never issued
The Results:
Total SMR: $94,750.00
Price Realized (includes Buyers Premium): $168,996.95
Price Realized as a % of SMR = 178.36%
I have constructed a spreadsheet detailing each lot ( Grade, POP, SMR, Price Realized).
The spreadsheet can be found here: 1955 Topps 2nd All-Time Finest Set Auction
For those members who have Excel and wish to obtain a copy in Excel format (to sort the numbers, etc.)....shoot me an email at
Hobby Regards,
John Basilone
edited: title of thread
0
Comments
Thanks for the report. It's a good piece of work and very useful.
Best,
Satan
Nice analysis! As I've written several times before, when a set is worth at least $15K, one really has to consider breaking it up to maximize it's value. There just aren't that many people who can write out a check for major bucks. Of course we really don't know if this set was completely dismantled. One bidder could have one all or most of the cards. BTW, the #1 - 1955 Set was on display at the National at PSA's Booth.
It just adds more thought towards the break it up or keep it whole question as well as the auction house vs. selling it yourself questions.
Dude, I think you're right on target with your thoughts -
$5,000, no problem.
$10,000, sure it's only money.
$15,000, I better check with the wife first.
$20,000+, would you be interested in selling me your tough commons from the set?
Great breakdown John!
Robert
Here is some more "food for thought"
The 15% buyers premium accounted for $25,349.54 of the $168,996.95 price realized.
Assuming a 10% Commission: The commission was $14,364.74 (approx $143,647.41 was the total before buyers prem.)
That would leave the owner with a net proceeds of $129,282.67...with the remaining $39,714.28 going to SportsCards Plus. Keep in mind..I am assuming a 10% sales commission.
I have never sold anything even close to those type of numbers....in a auction house format....what are the tax implications for this type of sale? In other words, what is a "ball-park" percentage figure would the owner have to claim as taxes. I would presume that the taxes would be calculated on his net proceeds of $129.282.67.
Can anyone clarify what if any additional taxes would have to be paid...and also a estimated percentage?
With that being said....I wondering what type of "bottom line" the seller could of received if sold as individual lots on eBay with 4 weekly 50 card lots that would end for 4 straight Sundays. Ebay and Paypal fees could average out to approx 10% of the final bids. In addition, eBay is pretty much a tax-free venture.
Compare that to the 23.49% ($39,714.28/$168,996.95) off the top that was taken from the total amount brought in (keep in mind to add any tax implications to the 23.49% as well).
Something to think about....your thoughts?
John
$10,000, sure it's only money.
$15,000, I better check with the wife first.
Check with the wife? Uhhh. . . I don't think that's a good idea.
54 Red Hearts
and now 64 Stand ups
I just spoke with someone who is pretty knowlegable regarding the tax situation. Basically, collectibles are not allowed capital gain treatment. Non-capital asset sales are subject to ordinary income tax rates, so it depends on the tax bracket of the seller. If no other income, $129,000 falls in the 28% marginal tax bracket (married or single) and the tax would be about $28,000 (married) and about $31,000 (single).
In that case the seller could possibly clear...$98,282.67 ($129,282.67 minus $31,000 in tax).
Now the question is....how would this set do on eBay (which basically is tax-free...).
In this case the set had bidders willing to pay $168,996.95 in bids (price realized). The owner selling through the house could net approx $98k after taxes.
On eBay....one could spread out the lots over the course of a month (51 lots per week). For the sake of arguement, paypal and ebay commission fees could total 10% of the bids.
So if the bids matched the payout from the auction house (you never know)...the seller would net $152,097.26 which is a difference of $53,814.59.
That is assuming that none of the eBay income shown on any tax returns. Another idea would be to spread the lots over several dealers to further spread the income (just a thought).
Even if the eBay bids did not match the Auction House bids dollar for dollar....the seller would still have a $53,814.59 cushion.
Does anyone think that those cards listed individually on Ebay would sell for 31.84% less ($53,814.59/$168,996.95)?
Looks to me that eBay may have been the better play....
Once again...yoru thoughts?
John
Aren't the proceeds from the sale of the cards only taxable to the extent they exceed what was paid for them? In other words, isn't just the profit taxable, not the entire selling price? I think that would make a big difference in your numbers.
Joe
<< <i>Aren't the proceeds from the sale of the cards only taxable to the extent they exceed what was paid for them? In other words, isn't just the profit taxable, not the entire selling price? >>
Joe-
I am not 100% positive on that one...thats why I asked if anyone ever involved in a auction sale like that. The person I spoke was an accountant who had some knowledge regarding these type of auctions.
I would love to hear from someone who has been a seller and could give us a clear cut answer.
Even if no taxes were paid from the Auction House.....the seller would have a $22,814.59 cushion rather than a $53,814.59 cushion.
Then the cards could not sell at more than a 13.5% discount on Ebay in order to match the proceeds from the auciton house.
John
Interesting and informative report. If you think about it a bit more, you realize that the cards were bought with after-tax dollars so the expense of putting the set together is double. And, in the end, the government and the auction house together made almost as much as the guy who put the time in and busted his ass to assemble such an amazing set.
Ebay is definitely the way to go on this. It's very apparent after reading your email. Everyone should read your post.
Best,
Satan
The income tax due should be the (amount of sale - expenses - initial purchase price of the cards involved)*(marginal tax rate for US and State). There may be (should be) sales tax implications as well. The taxes due would be identical regardless of whether the set sold on EBay or thru Superior though (except that expenses might be higher in one case or the other).
I would be shocked if the seller is not in the highest tax bracket.
I would be equally shocked if the seller paid the same freight to list his cards as someone listing say 5-10 cards. I would assume that any auction house would give a significant discount off their fees for such a series of cards.
Sandy
In regards to the commission...it could be less than 10%..true. I know of a consignor that had to battle to get 10% commission from a large auction house..and his lots were estimated to sell in the $125k range.
John
<< <i>Thanks for the info. In regards to eBay.....it is much easier to avoid tax implications. >>
Yes, it's called cheating.
I thought that was only if you got caught.
<< <i>why are ebay transactions not taxed? i have been wondering about this for awhile now. i guess it wouldnt be feasible for ebay to try to tax each individual transaction, and since state sales taxes vary it would be hard to peg the amount on to each Final Value Fee >>
I have been told that the ebay powerseller program is for this purpose. There are so many sellers on ebay that it would be impossible for the IRS to regulate all activity. This is especially true for users who may for example simply wish to get rid of very small items very infrequenly. It is ismply not worth the time to go after these sellers.
The IRS therefore needs to be more selective as far as who they will audit. There are many news articles about regulating commerce through ebay. It is my understanding that "powersellers" will be the first ones that the IRS will audit.
This makes sense because powersellers are oftentimes businesses, so not only is the dollar amount in question is greater, there is also less ambiguity as far as whether proceeds from ebay is considered income or simply hobby. For businesses, it is cleary income and subject to taxation.
There is so much tax evasion that goes on with businesses that sell on ebay. Potentially this could mean so much tax revenue. It is just a matter of time before some of the bigger sellers are audited and it makes sense that the IRS starts with the ebay "powersellers."
Don't give Gray Davis any ideas!!
Always looking for 1957 Topps BB in PSA 9!
If the seller bought the cards in packs back in 1955, his cost basis is $2.04 for the set, plus grading fees, say $2,000.00, so pretty much the entire gain is taxable.
If the IRS and states ever got their act together, it would just about put ebay out of business. Tack on 20% withholding, plus 5% state tax w/h and 6% sales tax and I (along with a few million more hobbyists) will be looking for another hobby.
As to the "cheating is wrong" question, if there are no absolutes and everything is relative, then cheating is wrong only if one gets caught. If there are absolutes, then cheating is wrong whether one gets caught or not.
As for the IRS, there is a famous phrase in the tax code regarding taxable income:
INCOME IS TAXABLE FROM WHATEVER SOURCE DERIVED, UNLESS SPECIFICALLY EXCLUDED BY THE CODE.
Satan
IMO, the low SMR values on cards like Groat and Pascual, both of which are very low pop. cards with high collector interest (and Pascual is his rookie to boot) need to be changed dramatically. These cards are significantly less likely than the average card to see a major bump in the number of 8s.
SCP's auction did present some good buys in the memorabilia area.
I still don't know how a 1959 KC Athletics autographed team ball (26 signatures, including Maris, on an official AL (Harridge) ball) went for only $275 plus buyer's premium and tax - but since that was my bid, I'm awfully happy it did.
Nick
Reap the whirlwind.
Need to buy something for the wife or girlfriend? Check out Vintage Designer Clothing.
Great purchase. I'm amazed at the low prices on amazing items that noboby seems to want. You caught us all asleep at the wheel. Anybody that can outwit the omnipotent powers of a supply and demand has my respect.
Always selling Gino Cimoli in midgrades,
Satan
Nick
Reap the whirlwind.
Need to buy something for the wife or girlfriend? Check out Vintage Designer Clothing.