Tax law and collectable cues

macguy said:
So does that mean that Balabushka I have sitting in the closet I got for $300.00 if I sell it for say $15,000. I will owe 28% tax? Do cue dealers and brokers report you if they handle your sale?



http://www.taxlawgeek.com/asset-pro...ibles-coins-currency-stamps-art-antiques-etc/
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Wow, this is a new one on me. The reporting isn't required until 2012 and I highly doubt cue dealers will be doing it.

My basic tax knowledge is most long term capital gains are taxable at 15% under the Bush tax cuts. You can offset them with capital losses - so it would be wise to sell loser stocks for instance to offset. Few people would report selling cues that way.

I wasn't aware that collectibles were still 28%. This is probably why the new 1099 reporting regulation. Eventually what will probably happen is antique, coin and art dealers will be forced to 1099 any sale they make, on consignment or purchase, over $600. Then whoever receives the funds will have to deduct their cost basis and prove what it is.

Basically, this sucks. Many of these large gains on collectibles are from items inherited from estates and are not subject to these taxes. So the people are going to get 1099's and have to show the will, the probate or trust papers, etc and hope like hell they are listed.


Chris
 
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The transaction itself could set off an alert because any deposit, check, withdrawal etc of more than $10,000.00 has to be reported by the party issuing the check, or making the deposit. A law that carries a hefty fine if caught breaking. The person doing the reporting gets a huge reward that comes out of guilty party's pocket. The law is to help catch drug dealers, and others that are into illegal activities.

Legally all profits, wages, and etc that are made legally or illegally are subject to income tax.



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TheBook said:
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The transaction would. Any deposit, check, withdrawal of more than $10,000.00 sets off an alert.

Legally all profits, wages, and etc that are made legally or illegally are subject to income tax.



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That's why some people would make three $5k deposits...

Jason
 
TheBook said:
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The transaction itself could set off an alert because any deposit, check, withdrawal etc of more than $10,000.00 has to be reported by the party issuing the check, or making the deposit. A law that carries a hefty fine if caught breaking. The person doing the reporting gets a huge reward that comes out of guilty party's pocket. The law is to help catch drug dealers, and others that are into illegal activities.

Legally all profits, wages, and etc that are made legally or illegally are subject to income tax.



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That's just for cash greenbacks as far as I know.
 
And here I thought this 1099 issue was repeal. See the following link. Bill H.R.4 March 3, 2011

http://www.gpo.gov/fdsys/pkg/BILLS-112hr4enr/pdf/BILLS-112hr4enr.pdf

112-9 H.R. 4 "Small Business Paperwork Mandate Elimination Act of 2011"
"Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011"
To repeal the expansion of information reporting requirements for payments of $600 or more to corporations, and for other purposes.
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Amends the Internal Revenue Code to: (1) repeal requirements for the reporting to the Internal Revenue Service (IRS) of payments of $600 or more to corporations that are not tax-exempt and of gross proceeds paid in consideration for any type of property; (2) repeal requirements for reporting payments made with respect to rental property which is not part of a trade or business; and (3) increase, for taxable years ending after December 31, 2013, the advance applicable dollar amount of the tax credit for health care premium assistance for taxpayers whose household income is less than 400% of the poverty line.
CRS summary.
CBO Estimate, dated 2/18/2011. 4/14/2011


H.R. 4
"Small Business Paperwork Mandate Elimination Act of 2011"
"Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011"
To repeal the expansion of information reporting requirements for payments of $600 or more to corporations, and for other purposes.
Legislation status.

Note: See also H.R. 705. House
of
Representatives * 1/12/2011: H.R. 4 introduced in the House, referred to the House Committee on Ways and Means.

* 2/22/2011: H.R. 4 Reported by the Committee on Ways and Means, written report H. Rept. 112-15. Placed on the Union Calendar, Calendar No. 6.

* 3/3/2011: H.R. 4 Passed in House by recorded vote: 314 - 112 ( Roll No. 162).

CRS summary.
CBO Estimate, dated 2/18/2011.
--------------------------------------------------------------------------------

Amends the Internal Revenue Code to: (1) repeal requirements for the reporting to the Internal Revenue Service (IRS) of payments of $600 or more to corporations that are not tax-exempt and of gross proceeds paid in consideration for any type of property; (2) repeal requirements for reporting payments made with respect to rental property which is not part of a trade or business; and (3) increase, for taxable years ending after December 31, 2013, the advance applicable dollar amount of the tax credit for health care premium assistance for taxpayers whose household income is less than 400% of the poverty line.

Senate * 3/3/2011: H.R. 4 received in the Senate, read the first time.
* 3/4/2011: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 16.

* 4/5/2011: H.R. 4 Passed Senate, under the order of 3/31/2011, having achieved 60 votes in the affirmative, without amendment by Yea-Nay Vote. 87 - 12. Record Vote Number: 49.

President * 4/6/2011: H.R. 4 presented to the President.
* 4/14/2011: H.R. 4 signed by the President. Became Public Law 112-9.


http://www.congress-summary.com/B-112th-Congress/House_Bills_112th_Congress_A.html#HR0004



http://snowe.senate.gov/public/inde...Group_id=2643ccf9-0d03-4d09-9082-3807031cb84a
 
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