Tax implications on individual Rolex sales

[dbleoh7]

I'm thinking about selling my 126234 Datejust I bought last year and get a Sub. I'm just wondering about the logistics of doing this with taxes...I bought it for $8950 + tax and the market for it is ~$11k. Through bank wire, I believe anything over $10k is reported to the IRS correct? Would you report this on taxes since it's a gain of ~$2k? Just seems like a nightmare and not sure it would be worth the hassle of it all. Just seeing if the general consensus is that people are not reporting this or if they are. I feel like with the new administration they are cracking down on that.

[Njkdog]

It also depends on how long you’ve owned the asset.

And i don’t think that 10k number is relevant.

Something surprising I noticed on my taxes, I’m supposed to report any tips that I receive over $20. I don’t work in an industry where I receive tips, but I just thought that was interesting when I was filling out the packet to give to my accountant

Sorry, I’m not more help

Edit, I would imagine if you don’t report it, and you get audited, they’re not gonna throw you in jail, they would probably just give you some kind of fine or make you pay the unpaid taxes.

[WilsdorfNDavis]

Edit:

Wire transfers over $10k (because they are treated like cash) are reported to the IRS.

[GoldenSub]

Originally Posted by WilsdorfNDavis

The 10K only refers to in person cash deposits, then they have to notify the Feds.

So it’s only reportible if it’s a 10k or above cash deposit? So if it’s a 10k or above check then it’s not reportable right?

[Littletommy]

.
Huh? You pay taxes?

[dbleoh7]

Originally Posted by WilsdorfNDavis

The 10K only refers to in person cash deposits, then they have to notify the Feds.

So a bankwire isn't reported to IRS over $10k?

[espanol]

Originally Posted by dbleoh7

So a bankwire isn't reported to IRS over $10k?

It is.

[Tools]

Originally Posted by dbleoh7

So a bankwire isn't reported to IRS over $10k?

I think folks are behind the times.

Beginning this year, Bidens American Rescue Plan begins to take affect. Bank movements or other transfer of sums over 600 bucks are reported, and third party platforms like ebay and paypal are required to give 1099k forms when fully implemented.

The IRS may be phasing this in with 5000 bucks sometime this year so we can get used to it, or not - tax orgs seem to have different opinions.

As to reporting the profit - if you make it, you report it, it's the law.

[rmagoo57]

Originally Posted by dbleoh7

I'm thinking about selling my 126234 Datejust I bought last year and get a Sub. I'm just wondering about the logistics of doing this with taxes...I bought it for $8950 + tax and the market for it is ~$11k. Through bank wire, I believe anything over $10k is reported to the IRS correct? Would you report this on taxes since it's a gain of ~$2k? Just seems like a nightmare and not sure it would be worth the hassle of it all. Just seeing if the general consensus is that people are not reporting this or if they are. I feel like with the new administration they are cracking down on that.

In December I received a wire for over $10k for a watch and I have no intention to report this transaction anywhere on my taxes even though I made a profit. I will wait for the letter from the IRS which will probably never come.

[Littletommy]

Originally Posted by rmagoo57

In December I received a wire for over $10k for a watch and I have no intention to report this transaction anywhere on my taxes even though I made a profit. I will wait for the letter from the IRS which will probably never come.

^^^This^^^

And don't sweat the small stuff.

[Apheaven]

Originally Posted by Tools

you make it, you report it, it's the law.

Can I pay you to come to the next dad’s poker night…and just repeat the above statement, over and over, to whoever wins


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[Calatrava r]

You have owned the watch less than three years so it is a short-term gain or loss. ST gains are taxed at ordinary income rates. If you paid 8995 out the door and sold it for 11,000, you have an approximate taxable gain of 2,000 which is treated like earned income. You can choose to not report it, but if the IRS contacts you, the penalties and interest will add up. To me, it is not worth the risk of the hassle or worry, and I would report it. This was the whole reason for the added revenue agents. To catch this unreported income which is easily detected because at some point it flows through a bank.

[piratfisk]

https://www.irs.gov/businesses/under...ur-form-1099-k

This page may be helpful.

[VictorGMT]

Originally Posted by Calatrava r

You have owned the watch less than three years so it is a short-term gain or loss. ST gains are taxed at ordinary income rates. If you paid 8995 out the door and sold it for 11,000, you have an approximate taxable gain of 2,000 which is treated like earned income. You can choose to not report it, but if the IRS contacts you, the penalties and interest will add up. To me, it is not worth the risk of the hassle or worry, and I would report it. This was the whole reason for the added revenue agents. To catch this unreported income which is easily detected because at some point it flows through a bank.

Short term should be one year.

https://www.irs.gov/taxtopics/tc409

[zengineer]

Think of how many transactions above $10k happen every day of the year. People buy and sell cars, gift money, pay debts, sell property....it's undoubtedly in the millions of transactions.

Surely you also sold something that you "lost" money on to offset?

I'm not saying dodge taxes...but just sell the watch and forget about it.

[EEpro]

Just stick to Richemont brands from now on and you'll never have to worry about this again.

[Steerpike999]

Originally Posted by EEpro

Just stick to Richemont brands from now on and you'll never have to worry about this again.

Sprayed my coffee all over my desk at this comment

[omar10213245]

Originally Posted by EEpro

Just stick to Richemont brands from now on and you'll never have to worry about this again.

ha! ain't that the truth

[omar10213245]

man, i wish i had such a problem. damn near every single watch i've sold out of my collection has been at a loss, some more costly than others.

[omar10213245]

Originally Posted by dbleoh7

I'm thinking about selling my 126234 Datejust I bought last year and get a Sub. I'm just wondering about the logistics of doing this with taxes...I bought it for $8950 + tax and the market for it is ~$11k. Through bank wire, I believe anything over $10k is reported to the IRS correct? Would you report this on taxes since it's a gain of ~$2k? Just seems like a nightmare and not sure it would be worth the hassle of it all. Just seeing if the general consensus is that people are not reporting this or if they are. I feel like with the new administration they are cracking down on that.

who are you selling it to? private individual? or a watch dealer/re-seller? if you're selling it to a dealer, i can assure you, you won't be getting $11k for it lol

[dbleoh7]

Originally Posted by omar10213245

who are you selling it to? private individual? or a watch dealer/re-seller? if you're selling it to a dealer, i can assure you, you won't be getting $11k for it lol

It would be an individual

[omar10213245]

Originally Posted by dbleoh7

It would be an individual

ah ok, well then you should be able to get it done. . .

[mikea]

Overthinking the tax thing! Sell the watch and make your $2k and move down the road

You do not have to fill CTR’s for wires over 10k, that’s for cash, cashiers checks etc…


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[Tools]

Originally Posted by Apheaven

Can I pay you to come to the next dad’s poker night…and just repeat the above statement, over and over, to whoever wins


Sent from my iPhone using Tapatalk

The Forum, and members, should think about telling folks to break the law or hide legal reporting requirements on public forums.

[Calatrava r]

Originally Posted by zengineer

Think of how many transactions above $10k happen every day of the year. People buy and sell cars, gift money, pay debts, sell property....it's undoubtedly in the millions of transactions.

Surely you also sold something that you "lost" money on to offset?

I'm not saying dodge taxes...but just sell the watch and forget about it.

This is a good point. Losses on other personal property sold in the same taxable year should offset gains. There may also be some carryover losses from previous years which may apply also.

[misochew]

Originally Posted by EEpro

Just stick to Richemont brands from now on and you'll never have to worry about this again.

[rmagoo57]

Tonight, I won $40 in quarters playing poker! This will also slip my mind on April 15th. I think.

[yachty 1]

Can I off set the profit with the thousands I have lost pre covid on all my watches sold? Esp my Hublot!!!

[superspectral]

I believe the IRS considers watches to be "collectibles." The capital gains tax is different for collectibles than for stocks and bonds.

1)The basis for a collectible is the price paid plus broker fees plus restoration costs.
2)If you sell the collectible for more than you paid the capital gain is taxed at either your ordinary income rate if held less than 1 year; or if held at least 1 year the lower of your ordinary income rate or 28%. Collectibles are taxed at a higher rate than stocks and bonds.
3)You may not realize a capital loss from a collectible if it is ever used for a personal purpose. It must clearly be documented as for investment purposes only.
4)The net investment tax 3.8% surcharge will add to the 28% if your AGI is high enough.
5) Popular gold and silver ETFs such as GLD are considered collectibles and are taxed at he 28% rate.
6) Online selling sites like eBay and Chrono 24 are/will be required to submit 1099 forms to the IRS, which will state your earnings selling items.

[East of Eden]

Originally Posted by Calatrava r

This is a good point. Losses on other personal property sold in the same taxable year should offset gains. There may also be some carryover losses from previous years which may apply also.

I don’t think you can deduct a loss all in one year like gains are taxed the same year