I've done some searching but have been unable to find info on what I'm specifically looking for. My guess is there's a specific term for this type of business that I don't know.
Suppose I want to start a separate business entity (an LLC?) that's sole purpose is to buy and hold certain non-traditional investment items. This would be things that one might think would go up in value such as sports cards, vintage books, art, or any other sort of physical asset that doesn't fall into a typical portfolio. These items would then be sold at a later date, presumably at least a few years, for profit.
Given the above, I have two questions.
Is there a special term for this type of business entity? Is the above even something that someone could set up?
If so, how would one report that type of business to the IRS? I'd imagine that if I went out and spent a bunch of money on sports cards and then told the IRS that these were a "business expense" that might raise some red flags. To them, it might look like me just buying stuff I wanted anyways and creating a business to help disguise my personal expenses as a business one. I'd imagine the above business would run at a loss for multiple years, until it sold off any of its assets, which certainly wouldn't help the case.
