Tax Expert Question

[Kco]

Originally Posted by Republicaninmass

Worst advice I've seen on the topic.

Congrats

There is a reason I said it depends.

Perhaps you're not following my point, if he is a business that is absolutely different and he should be keeping proper P&L on his business and every single item. He'd also be able to offset any gain with purchases of other items for inventory to replace it or sales of other items at net losses.

As a collector, if he sells an item for cash or equivalent and isn't being issued a tax form as part of the transaction then frankly, he'd be an idiot to pay taxes on his increase as I'd bet he could easily sell any other items at a loss to offset his capital gains.

If you like handing the government free money cause you made a profit on a single item, by all means, they appreciate it...those of us with any semblance of common sense or accounting knowledge will be just fine paying precisely no capital gains tax on a single transaction by being smart and understanding the system.