Posted By:
Bob CasmerJim,
You are correct. The IRS would deem the gain to be in the year of the auction under a "constructive receipt" doctrine. I was just trying to point out to anyone interested that there is no absolute necessity to run out and sell your collectibles this calendar year to take advantage of losses you may have already gotten from being in the stock market.
The correct tax planning move would be to look at what collectibles you may have already sold this year at a profit (which is then taxable at a tax rate of up to 28%) and then sell off stocks or other capital assets to generate losses to offset those collectibles sales gains.
If you've already generated the deductible capital stock losses, you don't lose them if you have more losses than gains. If you think you are forced to sell your collectibles now (ie: this same year) in order to take advantage of those losses, you are mistaken. Mastro's ad makes it sound to me like they're suggesting you need to sell your collectibles now (this year) to take advantage of the tax situation. In truth, that may not be the case and, it could mean someone would sell something in a depressed market when they otherwise could have waited till conditions improved before selling. Wasn't trying to be deep....just helpful.