How Do You Deal With It?

[Tsaiko]

I don't expect anyone to tell their secrets, of course, but can anyone tell what tax form you get from an auction house?

Much like asking different Doctors their opinion, accountants seem to have varying interpretation of the codes.

[WarHoundR69]

In New York State you get a Form 1099 for any auction sale over $600.00.

Well I just got one.

[Jim VB]

Originally Posted by Tsaiko

I don't expect anyone to tell their secrets, of course, but can anyone tell what tax form you get from an auction house?

Much like asking different Doctors their opinion, accountants seem to have varying interpretation of the codes.

There really aren't that many interpretations, and if the one you got sounds too good to be true... it's probably wrong.

Whether or not you get a 1099 is irrelevant. Your liability exists even if the auction house does not send a form. The IRS is tightening the code however. Starting in 2011, even Ebay and Paypal will be required to file Form 1099 for each merchant that has at least $10,000 in gross sales and 200 transactions.


But, I emphasize, even if you have gross sales of $9900 or transaction less than 200, your liability is the same.

The 1099 is an aid to you, but not getting one is not a legal defense.

Keep good records. Get a good accountant.

[Tsaiko]

Thanks guys, I really appreciate your time and advice. I understand liability - boy do I -, but was not up on collectibles and all the variables associated with it.
Of course I must hire a great CPA/Estate Planner, but I thought there might be a few incidental tid bits to be had that might help.

Like the SCD article. I didn't even consider adding up the expenses incurred in keeping this collection safe and intact for 50 years.

[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