Cost Basis Aggregator

Cost basis is the dollar amount you "paid" for an asset for tax purposes — usually the purchase price plus acquisition costs (shipping, grading fees, sales tax). When you sell, your taxable gain is (sale price - cost basis - selling costs). The IRS requires you to report cost basis on Schedule D of your tax return. For cards purchased in ONE transaction, cost basis is obvious. But if you bought 5 copies of the same card across 5 different dates at 5 different prices, your cost basis for each specific copy depends on which IDENTIFICATION METHOD you elect — weighted-average, FIFO, LIFO, or specific identification. Different methods can produce materially different tax liability.

WEIGHTED-AVERAGE (IRS default for mutual funds, allowed for collectibles on election): Sum of all lot costs ÷ total units. Every unit has the same basis. Simple but gives up the ability to harvest specific losses. FIFO (First-In, First-Out): When you sell, the FIRST units acquired are considered sold first. Typical IRS default for most assets. Produces longer holding periods for unsold lots (good for LTCG qualification) but higher taxes in a rising market. LIFO (Last-In, First-Out): When you sell, the LAST units acquired are considered sold first. NOT permitted for securities/collectibles by most IRS interpretations but documented here for completeness. SPECIFIC IDENTIFICATION: At sale time, you designate EXACTLY which lot the sold unit came from. Allowed by IRS if you can document the specific unit sold. Maximum tax flexibility — lets you harvest losses or LTCG-qualified lots as needed.

SPECIFIC IDENTIFICATION is almost always the right answer for cards, assuming you can track each physical card (serial number, cert number, photos). It lets you pick which specific card to sell at tax time — harvest losses, qualify long-term, or minimize gains on a per-sale basis. FIFO is the fallback if you cannot specifically identify which card was sold. WEIGHTED-AVERAGE simplifies but locks you into uniform basis — bad for tax planning. LIFO is generally not permitted for collectibles. The tool shows ALL FOUR methods side-by-side so you can see the tax impact before you elect.

Yes. Once you elect a method for a security/collectible class on your tax return, the IRS expects you to stick with it. Changing methods requires filing Form 3115 (Application for Change in Accounting Method). For specific identification, the election is made at each sale — you just designate which lot was sold at the time of sale. For weighted-average, the election is implicitly made when you first report using that method. FIFO is the default if no other election is made. Consult a tax professional before changing methods year-over-year.

COST BASIS includes: purchase price, shipping paid to acquire the card, sales tax paid on purchase, grading submission fees, authentication fees, and any card-show admission fees if the card was purchased at a show (proportional). COST OF SALE is SEPARATE and deducts at sale time: platform fees (eBay 13%, Whatnot 8%, etc.), shipping costs you pay to ship to buyer, payment processing fees, and consignment commissions. The tool tracks both separately. Many sellers incorrectly roll everything into "cost basis" — the IRS treats these as distinct categories on Schedule D.

The IRS is STRICT about cost basis documentation — if you cannot prove the basis, they default your basis to ZERO and tax 100% of the sale as gain. If you have partial records, reconstruct what you can: bank statements, PayPal history, eBay purchase history (retained 18 months), Whatnot bid history, credit card statements, and any email receipts. If you truly cannot reconstruct, consult a tax professional about "reasonable reconstruction" techniques — some collectors use dated auction comps as evidence of approximate purchase price, but this is NOT guaranteed IRS acceptance. Going forward: maintain a purchase log (date / source / price / shipping / fees) for every card the moment you acquire it.

If you buy a RAW card for $100 and later send it to PSA for $50 grading fee, your cost basis is $150 (purchase + grading). The tool lets you add grading / authentication / related acquisition costs as BASIS ADDITIONS on each lot. Each basis addition includes: date, description, amount. When computing FIFO / specific-ID sales, the tool uses (lot purchase + all basis additions for that specific lot). This is IRS-compliant per Treasury Regulation 1.263(a)-1 which treats "cost incurred to acquire an improved state of the asset" as capitalizable to basis.

No. CardVault is a computation tool, not a tax advisor. The methodology cited references the U.S. Internal Revenue Code (IRC §1012, §1221, §1(h)(4) for collectibles rate, §263(a) for basis capitalization) and IRS publications as of April 2026. State tax treatment varies and is not modeled. For any tax position with material financial impact, consult a qualified CPA or tax attorney. The tool is designed to produce documentation you can hand to a tax professional, not replace their judgment.