South-Central Pennsylvania's Ultra-Hip Pop Culture Mecca™! Since its founding in 1988 by local fans Ned Senft and Bill Wahl, Comix Connection™ has served the Pennsylvania comic-reading community for over 25 years. From its humble beginnings in the old York Book Emporium in downtown York to its current globe-straddling locations in the West Manchester Mall in York and on the Carlisle Pike in Mechanicsburg, Comix Connection™ has always provided the very best in customer service, selection of neat stuff and attention to detail. Visit us today! Questions? Comments? Call or Email us! Of course, all images are © and ™ their respective copyright and trademark holders! No matter where you go, there you are.

Sunday, July 13, 2008

This is annoying


From the COINLINK website:

Capital gains tax higher on sale of collectibles

Capital gain from the sale of a collectible held for more than one year is taxed at 28 percent.

That is significantly higher than the capital gains tax rate for most investments, which are taxed at a maximum 15 percent rate, 5 percent for taxpayers in the 10 or 15 percent tax brackets. Short-term investments in collectibles are taxed as short-term capital gains at ordinary income tax rates.


Ouch.

Labels: ,

5 Comments:

At 7/14/2008 2:20 PM, Blogger Currahee Chris said...

Bill my good man, please allow me as a CPA here in Pa to address this issue.

The IRS has made the targeting of collectible sales a HUGE priority- to the point where they are almost spending more efforts in enforcement of these sales than they are in going after waiters for taxable tips. EBay is the biggest cause of this problem as the billions of transactions and dollars that float through that website are proving difficult to monitor. There are people making small, nontaxed fortunes literally overnight. Not defending the position, just saying that is the state of affairs right now.

Take a look at the HeMan toy I brought to your attention a couple weeks ago- $11,100 for a toy that cost $9.95 20 years ago. Even at 28%, dude is still coming out ok.

As always, expenses related to the sale of collectibles are deductible so that should help offset some of that as well.

I think, if they haven't done it already, the IRS has put out information guidelines that set forth criteria to help people determine if they are causual collectible dealers or could consider what they do as an actual occupation. If it is a passive activity, it's gonna be taxed at a lower rate (I believe)

Still awake??? :)))

Either way, if anyone out there has sold any collectibles for a lot of money, you may want to consult with your CPA- I am not a tax specialist by any means.

I wouldn't be too worried about going to jail or getting nabbed by the IRS though, they have to go out and enforce this provision. Unless you are flagged for an audit- small chance of happenning and have extensively sold and traded in collectibles you might have some exposure to liability.

But yeah, it's a very very big concern to the government- as is E-Business- making it harder for Uncle Sam to get his money.

 
At 7/14/2008 8:36 PM, Blogger Bill at Comix Connection said...

Wow, currahee chris, that was a most excellent explanation/analysis. Always great to hear experts ply their trade, no matter what it is. Thanks!

Luckily we sell all of our old comics on the 364th day of owning them...

 
At 7/16/2008 9:34 PM, Blogger Currahee Chris said...

Yes, that is a wonderful example of a BS artist at work now isn't it?? :)))))))))))

 
At 7/18/2008 3:40 PM, Blogger Pa Gub'ment stooge said...

Wait! I am confused. Do you mean to say that people GET RID OF COMICS ONCE THEY OWN THEM?? They "sell" them.
May I ask why someone would do such a thing? Isn't that a sign of mental illness?
Well that and having children.

 
At 7/21/2008 11:00 PM, Blogger Bill at Comix Connection said...

I know, it's crazy! I'm saving all my stuff for a cleansing VIKING FUNERAL PYRE when I'm dead...

 

Post a Comment

Links to this post:

Create a Link

<< Home