- quote -

SCM made an electric still? Most of them I've seen used a
wooden fire to boil the mash. How many pints of 'shine can
you make a day? Did you register it with ATF?
See http://tinyurl.com/2ymtke

--
Don EA in Upstate NY

Moderator:
Running a still out of the 'back room' is a zoning
violation even in Alabama.

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Harlan Lunsford <hnslunsf...[at]bellsouth.net> wrote:
- quote -

Thanks, I am a law student in Federal Income tax and my
professor will give me big brownie points for this.

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Dick Adams wrote:

- quote -

This puts me in mind of my 1913 Royal typewriter prominently
displayed on my really old wooden desk at the office. I
bought it for 45$ maybe 12 years ago, and it may be worth
more.

But besides the old 1967 SCM electric still in the back
room, it's the only good looking one I have. Now then,
since I have two typewriters, does that make me a collector?
Let's say the Royal's value is 125$ and I sell it.
Capital gain I'm thinking and not a collectible.

Same with a Honus WAgner card. If it were the only one I
owned and did not actively collect others, would it be a
collectible? Would I then BE a collector?

ChEAr$,
Harlan

Moderator:
I'm with you on this one, Harlan. But I don't think the
Service will agree with us. Their position will almost
certainly be "You don't have to be a collector to own a
collectible."

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"Lockeguy" <tehalverson[at]stthomas.edu> wrote:

- quote -

After looking into it further, the question arises as to the
tax rate on the sale of the card. Of course, the answer is
"It depends". In this case, it depends on whether or not
the seller is a dealer. If so, it is business income. Then
there is the issue of when a collector such as Brian Seigal
becomes a dealer.

But note, the sale of a work of art, rug, antique, metal
such as gold, silver, and platinum bullion), gem, stamp,
coin, or alcoholic beverage held more than one year is
classified as a collectible gain or loss and the gain is
taxed at 28% rather than 15%. (See Pub 550)

IMO the card could easily be classified as an antique if not
just lumped in as a collectible. But his gain was $1,035,000
and afterall what's a $134,500 (the 13% difference) amongst
friends.

After reading the appropriate passages in Pub 550, Susan
(my child bride), who is also an auditor, smiled and said
"If it's valuable, it must be a collectible."

Dick

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"Lockeguy" <tehalverson[at]stthomas.edu> wrote:

- quote -

It's a long-term capital gain, but my question is whether
it's a "collectible." taxed at 28%. I have no experience
with collectibles, but it sure sounds like one. However,
it's not included in the (nonauthoratative, I know) list in
Pub 550, unless you consider it a "work of art."

--
Phil Marti
Clarksburg, MD

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Lockeguy wrote:

- quote -

This is a collectible so the tax rate is 28% verses 15%.
Correct?

Carl

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The seller, Brian Seigel, bought the card in 2000 for
$1,265,000 and sold it for $2,300,000. Is this a
long-term gain or a capital gain?

Moderator:
Honus Wagner was an early 20th centruy Major League
Baseball player. He tied with Babe Ruth for second
place on the first Hall of Fame Ballot in 1936.

In response to the OP: when you purchase an asset with
the intent of making a profit, the subsequent sale is
either a capital gain or a capital loss.

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