Thread: Taxes

Originally Posted by iravedic

The only way he could be taking the loss on the cello is by treating it as in 'investment'. Losses on 'personal' property do not meet the definition of a capital loss and are therefor not deductible. Boats used for personal pleasure and the family car are personal property. If you were a commercial fisherman, then the boat would be used in your trade or business and any loss on the sale would be deductible. Or if you had bought an antique car for investment purposes and garaged it then you maybe able to take a loss on the sale.

I was headed there Ira was just dragging white deeper into his story. Not to mention if the cello was treated as an investment you could only claim a loss on the difference between the purchase price and the selling price. The Feds could give a shit about the appraised value.

If you could deduct loss on personal items I would never have to pay again.

I pay state as well.

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Originally Posted by Nuckle

I was headed there Ira was just dragging white deeper into his story. Not to mention if the cello was treated as an investment you could only claim a loss on the difference between the purchase price and the selling price. The Feds could give a shit about the appraised value.

Though it's not what White mentioned, I suppose that it would be possible to find a way to have a portion of the value of the instrument be a charitable donation. In that case, the buyer would pay something less than the appraised value and the seller would claim the difference as a donation.

That would allow the appraised value to be a real factor, but it would also necessarily involve a buyer who could in some way qualify for such a donation - perhaps a school or a church.

All that seems a bit involved (and not a little ridiculous) for a cello.

Cheers,


AetheLove

Originally Posted by AetheLove

Though it's not what White mentioned, I suppose that it would be possible to find a way to have a portion of the value of the instrument be a charitable donation. In that case, the buyer would pay something less than the appraised value and the seller would claim the difference as a donation.

That would allow the appraised value to be a real factor, but it would also necessarily involve a buyer who could in some way qualify for such a donation - perhaps a school or a church.

All that seems a bit involved (and not a little ridiculous) for a cello.

Cheers,


AetheLove

That would be possible in the scenario you described in my opinion. It is risky water though. A $10,000 diamond ring is almost always going to "appraise" for $20,000. So in that example I could go by one for the $10,000, have it appraised, sell it to a charity for $10,000 and claim a $10,00 charitable donation deduction on my taxes. Not something I would want to take the stand on under oath. Your appraisal better hold water.

I end up going the opposite direction. I donated about $10,000 in personal property in 2012 resulting in a deduction of about $2,700. I am in the 1 and 10 category for audits, I do not take any chances.

Even then it would be the difference between the purchase price vs. the selling price. Not the selling price vs. the appraisal.

I wonder how much my Piccolo is worth....

I jam that hoe like Ron Burgundy jams his Yazz Flute.