How Do You Deal With It?

[Tsaiko]

Originally Posted by Pup6913

Zero becuse it is gifted. Also as long as you are pursuing a hobby and not a busuness then you have no liability

It's my understanding that a auction house will issue a tax form (1099?), so if one omits that form from their taxes they will have some splaining to do.
I'd imagine that no one wants to go face to face with the government.

[Leon]

As Jeff said you guys really, really, really need to speak to a CPA licensed in your state. Anytime you make over $600, from a source, they have to report it to the IRS. I don't think auction houses have to report as there is no cost basis, but you still would. Anytime you make a profit you need to report it. Follow those few things and you are probably close to being correct.....

[Jim VB]

Even this advice I would take with a grain of salt. Rates, income levels, etc., seem to change annually.

http://www.sportscollectorsdaily.com...ould-know.html

[barrysloate]

I once auctioned a tobacco card collection that was inherited by the consignor. At the end of the auction, instead of writing a check made out to him, I made it out "to the estate of..." In this way, the heirs did not have to pay tax on it.

But I am not an accountant, I'm just passing along how this was handled.