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What if my jacket has since become a collectible, and thus sells for much more than what I paid for it?
by baddox 12y ago
What if my jacket has since become a collectible, and thus sells for much more than what I paid for it?
- ars 12y agoThen technically you have to pay taxes on the gain. You would be able to deduct expenses though. For example there are exemptions written into the law about gain on selling a house, if you don't make too much extra. Are you trying to ask me about making something commercial retroactively? i.e. you did not buy the jacket with the intent to sell it for more, and now suddenly it's worth more?
- baddox 12y agoThe taxes you pay on the gain is just the normal personal income tax, right? Isn't that a separate issue from being regulated as operating a business or commercial venture?
- ars 12y agoNo, they are capital gains tax. Or you can put the earnings inside a business, and then offset it with expenses. The business could pay you salary, or you can keep the money inside the business and realize it as capital gains tax later when you want. You have many choices on how to organize the money.