The One Ring, a unique, serialized card for Magic: The GatheringThe Lord of the Rings-themed set has been found, but little is known about the circumstances of its discovery. The only thing that is certain about the map is that someone somewhere will want to buy it. And that, my friends, can only mean one thing: the tax inspector is coming.
Early reports appear to indicate that the owner of the One Ring card, who wishes to remain anonymous, is currently in Ontario, Canada and has secured the services of an attorney. And that’s a nice first step, representatives of Ontario tax authorities And Argyle tax office told Polygon by phone, because they now have to determine the provenance of the card.
If the card was purchased from a store as part of a blind deck, which it most likely was, then selling that card will likely be considered a capital gain. The same Canadian tax laws apply whether the card comes from the purchase of a single pack (about $12.99) or a box of packs (which was $518 when it launched on June 23). Once sold, Canada’s progressive rate takes effect, making 50% of the sale taxable at 49%.
If our lucky ring bearer pays out $2 million — currently the highest bid, coming from Spain — they owe about $490,000, according to the tax professionals we spoke to.
So what if the wearer of The One Ring just found the card – say, at the bottom of a stream or on a shallow lake bed while fishing with a family member? Well, then the full amount of the transaction would be taxable. A sale for $2 million would net the Canadian government $980,000 in this scenario.
But what if the bearer of the ring was a bearer datum The Ring by a relative, for example a distant uncle on the eve of his hundred and eleventh birthday? In that case, a tax advisor said, the sale could be handled completely tax-free.
So I think the old adage really rings true: keep it a secret. Keep it safe. And keep it for a few generations if you don’t want to pay taxes on it in Canada.