It's a lot of trouble to go through just to show that you took a small loss.
Moreover, some watches have been upgraded and/or restored, at significant cost. I suppose that cost might be included in the cost basis, although routine maintenance (like a watch service) would not.
That is correct. As far as maintenance is concerned, I think it is a matter of degree. If I sold a $500 watch that needed $300 in work that included a service then I would say cost basis = $800.
gatorcpa
Yes, but now you’ll need to itemize your return when you otherwise might not have needed to. In my case I took a FOIS on a trade. I have some WhatsApp messages regarding the trade but nothing else. The watch was later sold at $3600 so that’s less than the purchase price. In the end it likely won’t result in me paying more taxes but will require additional time and potential expense if you pay somebody to prepare a return for you.
As Dan mentioned before if everybody thinks it’s just the normal way of doing business (for websites and money exchangers to file income on your behalf), perhaps we should have Omegaforums send notification to every seller’s home country tax authority that an item that was listed for sale is now marked as “sold”. Omegaforums is now a business itself with the Google ads, no?
Yes, but now you’ll need to itemize your return when you otherwise might not have needed to. In my case I took a FOIS on a trade. I have some WhatsApp messages regarding the trade but nothing else. The watch was later sold at $3600 so that’s less than the purchase price. In the end it likely won’t result in me paying more taxes but will require additional time and potential expense if you pay somebody to prepare a return for you.
As Dan mentioned before if everybody thinks it’s just the normal way of doing business (for websites and money exchangers to file income on your behalf), perhaps we should have Omegaforums send notification to every seller’s home country tax authority that an item that was listed for sale is now marked as “sold”. Omegaforums is now a business itself with the Google ads, no?
Seems to be conflicting information on thread as to whether sales losses offset gains. Morbidly curious to know.
Also curious to know what criteria are used to classify a “collectible” for these tax purposes. A 50yr old watch seems a more obvious inclusion than say a brand new watch, etc.
I'm glad you were able to track your purchases, but it would certainly not be "easy" for me. Firstly, I have bought several high value watches for cash. I have also made a number of trades for high value watches, both in person and at a distance. For the trades done remotely, I would have to find forum messages or emails, which might or might not have been deleted. The same would apparently be true for watches that I bought using bank transfer, Transferwise, PP F&F, etc. We are talking about many dozens of watches. OF messages are saved, but on other forums, I frequently delete messages because my mailbox fills up. Finding emails from 15 years ago might also not be easy. For the in-person trades, obviously I have no records at all. I do keep a spreadsheet for my own records, so I can certainly put a reasonable value on what I "paid" for each watch, but documenting them would not be easy in many cases.
Moreover, some watches have been upgraded and/or restored, at significant cost. I suppose that cost might be included in the cost basis, although routine maintenance (like a watch service) would not. Good luck separating all that out. Then you also need to document the eBay fees, which have traditionally been billed separately at the end of each month. It's a lot of trouble to go through just to show that you took a small loss.
Pretty sure you can put a lot of stuff into cost basis - Insurance on the watch, etc.
An appraisal of your collection would fix all these issues. Either that or you can find the same watch online and record with an image etc the current sales value for your item. Unless it is crazy most inspectors will accept it...if it even get's to that.
2- Valuable art- is an Asset and the appreciation or depreciation is measured and paid for yearly in taxes, rather than the full expense of the purchase.
Absolutely - but if people starting sharpening their pencils on how much they actually put into a watch that they later sold at a "profit," there would be far too much resulting self-reflection. Best to just pay your taxes on imaginary gains and consider it mental health expense.
gov.uk said:You don’t have to pay Capital Gains Tax on personal possessions with a lifespan of less than 50 years. This covers all machinery, and includes things like antique clocks or watches.
Good news for UK citizens (and don't we need some)
Don't tell 'em watches can be serviced, Pike.
