How Do You Deal With It?

[autograf]

I've sold large lots through at least a couple of the larger auction houses and never received a 1099 form. It may be the state I'm in (confusion) or some other variable but never received one.

[Leon]

Originally Posted by autograf

I've sold large lots through at least a couple of the larger auction houses and never received a 1099 form. It may be the state I'm in (confusion) or some other variable but never received one.

Just a guess but since the auction house doesn't have a cost basis they don't know if there is a profit, hence no 1099. Of course if you made a profit it still has to be reported by you. (not aimed at you Tom, just making an example, though if you made a profit..... )

[Cat]

How Do You Deal With It?

Step 1: Never discuss it on a public board.

Step 2: Repeat step 1





...and that's coming from someone WHO THINKS he declares everything correctly.

[PolarBear]

Originally Posted by Cat

Step 1: Never discuss it on a public board.

Step 2: Repeat step 1

...and that's coming from someone WHO THINKS he declares everything correctly.

Best advice so far.

[Jim VB]

Originally Posted by Leon

Just a guess but since the auction house doesn't have a cost basis they don't know if there is a profit, hence no 1099. Of course if you made a profit it still has to be reported by you. (not aimed at you Tom, just making an example, though if you made a profit..... )

Leon,

A 1099 is not intended to deal with the "profit", just a notification that there has been a disbursement of cash. When you sell a house, you get a 1099 showing the sales price. It's your job as the filer to show what your cost basis was.

[Leon]

Originally Posted by Jim VB

Leon,

A 1099 is not intended to deal with the "profit", just a notification that there has been a disbursement of cash. When you sell a house, you get a 1099 showing the sales price. It's your job as the filer to show what your cost basis was.

And that is why I have a very good CPA

[prewarsports]

I graduated Law Schoo as a Tax Attorney (but I dont work as one) and spent a little while working for the IRS so I have a little insight into this. Steve is right about the "Stepped Up Basis". If your grandfather paid $1 for a 1933 Goudey Baseball card and he sells it the day before he dies for $1000, he has taxable income of $999. If he dies and you inherit it and the Fair Market Value (stepped up basis) is $1000 and then you sell it for $1000, your taxable income on the transaction is Zero. It is like you paid what the fair market value is.

How you handle the income part is tricky and professionals will disagree. There are several different options all of which are completely legal and this is where you need to consult a CPA.

If you are selling inherited Sports Collectibles and they are not worth huge amounts of money, you are going to owe very little in taxes if anything is the basic answer.

Rhys Yeakley

Non-Bar-Certified Tax Attorney

[Fred]

Enough with non-sense. The easiest thing to do is give it to ME. Let me worry about all of the taxes and stuff that we all ignore. Don't get caught up in this "what if" game. Email me privately and I'll provide you with my mailing address. It will be the end of all of your concerns...