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    #1

    Capital Gain Collectibles

    One of my clients who years ago rode broncos in several rodeo circuits. This was about 18 years ago. About 2 years ago he was contacted and asked if a museum could display his saddle, spurs and hat that he wore in his last ride. As luck would have it a fire destoyed the museum and an insurance company is offering him a rather sizable sum to pay for the burned up gear.

    I have researched this to determine if this is considered a collectible/antique which would make it subject to the 28% rate versus 15% capital gains rates but the results have been inconclusive.

    Any thoughts, cites or tax court cases?

    Kirk
    Sabre

    " You don't learn much from the second kick of a mule."
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    #2
    Originally posted by glenncpa View Post
    One of my clients who years ago rode broncos in several rodeo circuits. This was about 18 years ago. About 2 years ago he was contacted and asked if a museum could display his saddle, spurs and hat that he wore in his last ride. As luck would have it a fire destoyed the museum and an insurance company is offering him a rather sizable sum to pay for the burned up gear.

    I have researched this to determine if this is considered a collectible/antique which would make it subject to the 28% rate versus 15% capital gains rates but the results have been inconclusive.

    Any thoughts, cites or tax court cases?

    Kirk
    Well, I would question just what IS a so called 'collectible'. Does the fact that this
    gear was displayed in a museum make it a collectible? If I were client I would take the attitude that these items were just laying around up in my attic and this here museum
    wanted to borrow them and I had no intention of hanging on to the saddle and spurs, etc,
    to make a buck down the road. Heck, maybe I can sell my old Class A uniform to that
    new Infantry Museum over at Fort Benning.

    The question becomes, then, is there a ready market for these items and a crowd of
    rodeo aficionados willing to pay big bucks for such?
    ChEAr$,
    Harlan Lunsford, EA n LA

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      #3
      Wouldn't the saddle and spurs be business property the disposition of which reported on a 4797? I reckon the hat could be worn for casual wear. It can be around here anyway.
      In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
      Alexis de Tocqueville

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