Errors That Cost Retirees Thousands
When you decide to sell items from your collection, avoiding common pitfalls protects your potential profits. Many retirees unknowingly destroy the value of their items through well-intentioned mistakes.
The “Clean Up” Ruin: Never aggressively clean an antique or vintage collectible before consulting an expert. Stripping the natural tarnish (patina) off vintage jewelry, coins, or furniture often destroys its value. Collectors want the item to show its authentic age. A quick polish of a rare coin can literally erase thousands of dollars in value in seconds.
Throwing Away the Original Packaging: In the collectibles market, the box is sometimes worth as much as the item inside. “Complete in Box” (CIB) is the gold standard for toys, video games, and electronics. If you find an old gadget in your closet, resist the urge to throw away the faded cardboard box it sits in.
Accepting the First Bulk Offer: When downsizing, the easiest route is allowing a single dealer to walk through your home and offer one lump sum for everything. While convenient, this guarantees you will receive a mere fraction of the true market value. Dealers must make a profit, so they buy low. Take the time to separate potentially high-value items from general household goods.
I’m in my 80s now, and recently acquired a number of family items of furniture after my (older) sister passed away. I was not responsible for state or federal inheritance taxes on the financial items she willed to me, but — IF I were to sell all or some of the furniture items (a few might be antiques, others not) — would I be liable for “capital gains” taxes on whatever money I receive from their sale?
I’m conflicted. On one hand, some of these are “family items” that my children might want someday, but I personally have no real connection to them in that respect. Further, they have been cluttering my basement for over a year. So being aware of the possible tax ramifications might influence my decision on how to proceed (or whether to proceed) in disposing of the items.