Taxes On Consignments

[joetinkerfan]

I recently consigned some of my collection to an auction house and was wondering what the process is for taxes when it comes to the final sale. I would assume that a great majority of you have consigned in the past and have experience with this matter. Any information would be appreciated.

[Hankphenom]

Disclaimer: I am NOT a tax professional. But, you are responsible for paying taxes on any gain from the sale of your assets. If you have held them for more than a year, the capital gain rate (for your particular overall marginal tax rate) applies. You can deduct the cost of these assets, assuming you have those records, from the gain at sale, in determining the net taxable gain.

[ullmandds]

hank's right...but I'm guessing most do not claim this income...and I believe at this point the AH's do not report it.

[honus94566]

Originally Posted by ullmandds

hank's right...but I'm guessing most do not claim this income...and I believe at this point the AH's do not report it.

Probably true. But, if a check is in excess of 10K, your bank is required by law to report it to big brother when a check of that size is cashed or deposited.

(from what I understand)

[Texxxx]

Originally Posted by honus94566

Probably true. But, if a check is in excess of 10K, your bank is required by law to report it to big brother when a check of that size is cashed or deposited.

(from what I understand)

That's not true. I deposit lots of checks well over $10000 in my business and they are not reported.

[Leon]

Originally Posted by Texxxx

That's not true. I deposit lots of checks well over $10000 in my business and they are not reported.

I think the federal law has more to do with cash transactions of $10k or more. It would be crazy to have to report all transactions to the govt. that are over 10k. All of that should come out on tax returns, one way or the other.

[ibuysportsephemera]

Originally Posted by honus94566

Probably true. But, if a check is in excess of 10K, your bank is required by law to report it to big brother when a check of that size is cashed or deposited.

(from what I understand)

Not true...this is a popular misconception.

Jeff

[slipk1068]

Originally Posted by Hankphenom

Disclaimer: I am NOT a tax professional. But, you are responsible for paying taxes on any gain from the sale of your assets. If you have held them for more than a year, the capital gain rate (for your particular overall marginal tax rate) applies. You can deduct the cost of these assets, assuming you have those records, from the gain at sale, in determining the net taxable gain.

Not sure capital gain/marginal tax rates apply to collectibles. I seem to remember reading that collectibles are their own class of asset and the rate was something huge (28%?) no matter what your marginal rate is and no matter how long you have held the asset. I could be wrong.