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If a tax increase occurs

grateful1

grateful1

Oh My!
Joined
Feb 6, 2006
Messages
19,906
Location
CT
If a tax increase goes through...what happens to the value/price of your stock?

Say a $10 stick goes to $15....you have a box you picked up(pre-increase) for $10 per, does that mean you sell/trade it at the current market price or at what you paid?

A $200 box you picked up 2 years ago, now sells for $220...and it's aged...u is the value $200 +age or $220 +age?
 
The value on ebay is the new value. The value here is the old value.

Now that wasn't so hard now was it?
 
Good question.

I don't sell cigars, but this will be a dilemma for the board and for those who do sell. I don't think it would be fair/reasonable to ask a BOTL to sell a 2001 Opus for $12 when the same cigar from 2008 will cost $22. Personally, I'd be willing to pay the extra for aged sticks over newer ones.

IMO, trades will have to be conducted at the new market value. This will probably be an issue only in the first several months when trades involve a mix of newer and older cigars. After that initial period, the new values will probably take over the board. Again, it doesn't seem reasonable to ask a BOTL to make an unfair trade simply because they have older items. In our hobby, "older" usually means "better".

Here's an example to consider: BOTL #1 buys a box of Padron 2000 Natural a year before the increase goes into effect. After the increase, he then offers a 5-for-5 trade for Padron 2000 Maddies. BOTL #2 takes him up on the trade but his box was bought post-increase. Are we going to ask BOTL #1 to make up the cost difference on what (IMO) should be a straight up trade?

Again, good question... I'd like to hear others' thought on this.
 
If I buy something at above MSRP, I usually look at the trade value or sell value as MSRP. Otherwise, it's worth what I paid. I don't even consider age unless something is at least 4-5 years old.

Some may say I'm being overly generous or taking an unnecessary loss, but I figure why should someone else be hurt by my high state tax or by my inability to find a decent deal. If I'm selling or trading it away, I likely don't want it enough to keep it or I have plenty to spread around. I'm not saying everyone should do it that way, and I don't expect them to. That's just how I do it.

Of course, I'm done with this aspect of the hobby for awhile... :(


Forgot to add an answer to the original post...I would say that the value remains at what was paid. Trades are always tricky, anyway, and I think the parameters need to be spelled out by both parties to begin with. I think if you're selling stuff, it's the same thing. Value is what you paid.

It's always better for me to err on the lower side of value if there's any uncertainty. If I lose a dollar or two in the process, oh well.
 
I'll never sell something for more than it cost me, so this creates a bit of a dilemma. When I get a good deal on something and someone wants to buy smokes from me, oftentimes I'm reluctant to sell my cabinet stock since replacing the smokes will cost me more than the ones I already have. I usually just give 'em a couple and call it good..... :cool:

Bottom line - If you sell smokes for more than you paid, you're profiting from your BOTL's and I won't go there.

My $00.02 - B.B.S.
 
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