Selling expensive collection tax 2 2

[jaybuck43]

On 5/2/2022 at 9:39 PM, spidrvacc said:

Have a question since someone mentioned you still have to report cash sales.and before anyone jumps on me , i got paid by check and my sale was all by the book and my brother is a legit guy. Hes also buy the book. Again just a question i have.

I always assumed that the reason that the buyers in comic book adds  put we  pay " cash"  on the spot in there buying adds  ( go to overstreet adds right now) was so you could decide not report it if you wanted to be like that.   The place i sold mine to had that in there add  " cash paid on the spot"but  i never asked for cash  and i got a paid by check.was i always wrong in ny thinking?  

I will repeat what Vincent said to me when I asked for my 1099....  "My job is to sell your items and pay you.  Your relationship with the IRS is between YOU and Uncle Sam".  Meaning, if you wish to commit tax fraud, by all means, that's your decision.  

People like to hear "Cash" paid for two reasons.  1) It means you're a serious buyer.  You have the resources needed to slap the necessary cash down on the glass to make the deal.  There was a discussion recently about someone buying a TMNT #1.  Auction hammered for $238,000 or there about.  Buyer then said to the auction house "O yea, about that... I totally expected to pay by selling this other comic I had.. can you help me out?"   So now the auction house is tied up and waiting (and the seller is waiting for their money) because the buyer wasn't liquid.  2) Cash is attractive because there are no records.  Maybe you don't want your wife to know how much you got (because she'll want you to spend it on something responsible like the kids braces instead of a new sports car.)  But any income you make, no matter the source (even illegal) needs to be reported on your taxes.  

[jaybuck43]

On 5/2/2022 at 10:04 PM, KCOComics said:

 

Legally, you are responsible for paying taxes on the gains no matter what. Cash, check, credit, doesn't matter. 

Cash makes the paper trail harder for the IRS, but it doesn't change the law. 

 

As my neighbor (who's a forensic accountant for the IRS) likes to say "Wilson nailed Capone with a bank deposit slip... today we have big data, algorithms, and global investigations ."

[shadroch]

On 5/2/2022 at 6:39 PM, spidrvacc said:

Have a question since someone mentioned you still have to report cash sales.and before anyone jumps on me , i got paid by check and my sale was all by the book and my brother is a legit guy. Hes also buy the book. Again just a question i have.

I always assumed that the reason that the buyers in comic book adds  put we  pay " cash"  on the spot in there buying adds  ( go to overstreet adds right now) was so you could decide not report it if you wanted to be like that.   The place i sold mine to had that in there add  " cash paid on the spot"but  i never asked for cash  and i got a paid by check.was i always wrong in ny thinking?  

I think those ads are designed to let people know you are a serious buyer with cash, and not someone looking to broker a third party deal or run the stuff thru an auction house. No one expects you to show up with cash on the spot .

[Dr. Love]

On 5/2/2022 at 5:56 AM, Math Teacher said:

Both our current financial advisor and our former financial advisor said that there has never been a five-year period where stocks didn't increase. I'm going to take them at their word, as I am too lazy to look this up. I can't believe that this is true during the Great Depression, but what do I know.

"there are three kinds of lies:  lies, damn lies, and statistics" - Twain

it all depends on when you bought and what you bought, of course

take the DJIA as a rough example - if 1929, then 26 years to get back to where you got in.  Of course, there were periods within that were $ could be made.  If 1966, then 30 years.  If 1999, then 8 years.  If 2007, then 6 years.

 

 

 

[Bird]

On 5/2/2022 at 11:31 PM, shadroch said:

No one expects you to show up with cash on the spot .

I will! I offer CASH MONEY because I do plan to show up with cash on the spot! It doesn't seem to help much, maybe because people think I am not being literal but I am. We can meet at the police station, cash money though. Dolla dolla bills!. I offer cash to give flexibility to buyers, and because cash is king.

I am buying a house, or trying to. Everyone wants cash offers. But they are getting the money at signing either way. But people like to hear cash money, so I offer cash money.

[spidrvacc]

Thanks , guess i was wrong. I see flyers all the time "Cash for cars" "cash for gold". Etc  and figured the same. When i was younger i had a friend of a friend who purchase  cars , fixed them up and sold them cash only so he avoided big taxes.   There was Always a scam and he did get into some issues with insurance scams i heard.  Havent seen him in 30 years but a friend ran into him a few years ago at a diner and he was with  his 3rd  wife  a stripper 30 years younger . Interesting life  lol.

[shadroch]

On 5/3/2022 at 4:58 AM, spidrvacc said:

 Havent seen him in 30 years but a friend ran into him a few years ago at a diner and he was with  his 3rd  wife  a stripper 30 years younger . Interesting life  lol.

You say this as if it were a bad thing.

[KPR Comics]

On 5/1/2022 at 6:59 PM, spidrvacc said:

About 2 years ago yaall helped me with questions about selling my medium size collection. Was asking about tax issues of selling.  Kind of got out of comics. Wife out of work. Needed money  Was mostly bronze with value 24k and i got 50% value in a deal and had some decent paperwork for tax purposes. Now i collected back then with my older brother.now he collected silver and bronze . Alllot of the keys, xmen 1, AF 15, hulk 181  etc. These all absolutely blew up  .2 yesrs ago it was probably worth less then half , books are  mid grade. No high grade but all keys, ,  , i went to his house yesterday, looked at ebay sales and worth about 100k give or take .  He has zero paperwork on purchases. No ebay , Was 25-35 yesrs ago most got at shows, mail order ,etc . Hes going to sell maybe to guy who got mine. Atleast thats the plan .Doubt any cash since were talking maybe a collection worth 100k and maybe getting 60k.   I know accounting rules .(i was an accountant 15 years ago but bank accounting) 28% straight on profit of selling collectibles but what if you dont know what you paid? Or cant prove it.  Is it then you would be taxed 28% on the full value ?  So a $100k collection or even a $100k single comic book .you pay 28k in taxes? Or can you say maybe use  what the fair market value  is and use that for a loss?  So sold for 60k but worth 100k so a loss?

Just to add im just asking to see what anyone knows, opinions  just for me, he is going to sit down with an accountant before he does anything and rightfully so.   Not taking anyone opinion here as fact. Just curious  And hes stand up guy.not trying to cheat on taxes . He also a banker in ny. 

Hes getting ready to retire in a year or so and move to another state . Figure he will sell by end if year.  Or early next year so this isnt happening now.

 

Any thoughts on selling a collection or even s single book for a large sum to a dealer at say 50% of what its worth (not selling to a customer at a profit)  lets say 100k if you have no back up basis for cost?

 

Also do dealers pay large sums in cash?  Guy i got sold my books to was check only . 

 

Thanks

A big, "hell no" to the bolded question.

[spidrvacc]

On 5/3/2022 at 9:04 AM, shadroch said:

You say this as if it were a bad thing.

In my 20's my good friend whos still my friend but lives elsewhere in the US dated a stripper for a year. Was just like in the movies.  He was always giving her money. Jealous all the time, mad about the stories of what she was doing in the private rooms snd ofcourse tried to get her to leave the profession multiple times. When the money stopped , she dumped him. Was for the better.  Sorry to steer the story away from comics but had to add that tidbit. 

[shadroch]

On 5/3/2022 at 7:14 AM, spidrvacc said:

In my 20's my good friend whos still my friend but lives elsewhere in the US dated a stripper for a year. Was just like in the movies.  He was always giving her money. Jealous all the time, mad about the stories of what she was doing in the private rooms snd ofcourse tried to get her to leave the profession multiple times. When the money stopped , she dumped him. Was for the better.  Sorry to steer the story away from comics but had to add that tidbit. 

He met the wrong kind of stripper. What you want is the stripper with a heart of gold. 

[csaag]

On 5/3/2022 at 11:15 AM, shadroch said:

He met the wrong kind of stripper. What you want is the stripper with a heart of gold. 

Yes, viewing "The  Hangover" should be required for anyone wanting to date the right type of stripper.

[shadroch]

In 2003, I attended a bachelor party for a casual friend in Vegas.  The second night, Ritchie, the groom to be met a stripper named Shy Ann. It was a play on her Native heritage and she was wonderful. The next week, two weeks before his scheduled wedding to his high school sweetheart, he flew back and they got married.  He brought her back to Long Island where she made his life hell, stole a large sum of cash , some of his parents jewelry, and disappeared after leaving a note accusing his father of trying to seduce her. 

Amazingly,  his fiancee took him back and they married the next year.  They were together when I left NY.

[csaag]

On 5/3/2022 at 9:51 AM, KPR Comics said:

A big, "hell no" to the bolded question.

if you go the inheritance route and say you're in a state which requires some level of tax. So you have a copy of the estate tax form for a record and whatever info was used to establish a FMV.  Do  you know if that situation allows for a loss to be claimed?

[shadroch]

On 5/3/2022 at 9:14 AM, csaag said:

if you go the inheritance route and say you're in a state which requires some level of tax. So you have a copy of the estate tax form for a record and whatever info was used to establish a FMV.  Do  you know if that situation allows for a loss to be claimed?

A loss against what? 

[shadroch]

On 5/3/2022 at 12:28 AM, Dr. Love said:

"there are three kinds of lies:  lies, damn lies, and statistics" - Twain

it all depends on when you bought and what you bought, of course

take the DJIA as a rough example - if 1929, then 26 years to get back to where you got in.  Of course, there were periods within that were $ could be made.  If 1966, then 30 years.  If 1999, then 8 years.  If 2007, then 6 years.

 

 

 

What a load of hooey.  It is nice of you to admit that there might have been a few opportunuties to make money in stocks in the years between 1929 and 2013.

[csaag]

On 5/3/2022 at 12:20 PM, shadroch said:

A loss against what? 

i meant in the example orig given were a book/collection would drop in value sometime later after being inherited. Even if not realistic, was just wondering if something like that is allowed with collectibles.

[KPR Comics]

I’m pretty sure if you have a capital loss with collectibles, that loss can offset capital gains for federal tax purposes.  So, if you inherited a collection, got it appraised as of the date of inheritance, held the collection for investment purposes (thus eliminating everyone on the boards who says they don’t care about values) then sold at a loss, you very well may be able to use that loss to offset any capital gains you incur during that year, and maybe beyond.   But only against capital gains, not ordinary income.   
 

I am not a tax lawyer, and this is not tax advice.