Quote:
Originally Posted by Gusturd
This is the question I've been struggling with and trying to research the ramifications of either approach has left me more confused than anything else.
Someone please correct me if I have this wrong. The way I'm understanding it, if I took my entire collection to an auction house and it sold for 100K (wishful thinking but for simple math), I believe I'd have to report that all is income and thus pay approximately 28K in taxes!?!?! There would be no consideration or netting out what I paid for the item. Is that correct? Or is only the gain taxable?
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Even as a hobbyist you can write off your original cost of acquisition so if you spent $60k and sold for $100k you would be taxed on $40k