Violin sold for $ 15,000

[John of PA]

not a capital asset

This situation does not apply in this scenario. Let's say your wife quits playing and she GIVES her 1774 violin to her niece who does not play. Guess what, her niece's basis is your wife's basis (cost less depreciation taken). Now assume this thing is really worth a ton of cash and it was fully depreciated by your wife. The niece takes it Sotheby's and it sells for $1.2 million dollars. The niece will have a 1.2 million cap gain taxed at 28%. It was NEVER her business property, to her it was an antique. Even if the new buyer plays with the NY Philharmonic and will use it as business property.

I assume no one would assert that the Violin is a capital asset taxed at only 15%.

[jainen]

most definitely a capital asset

It is most definitely a capital asset. Since you have determined that it is a collectible antique, it is subject to a maximum capital gain tax rate of 28% (assuming the holding period is long term).

[John of PA]

TY Janien

Thank you Janien. I just wanted to hear it stated like that. All of a sudden, the amount she is getting is way more than was thought, so I'am just looking for double assurance. Thanks again, wishing you a smooth finish to tax season.

[Snaggletooth]

Capital Asset

Yes the violin IS a capital asset. And yes, it is taxable at 28%.

My guess is that your aunt DOES have some basis in the fiddle. (Snag's version of violin)
Even if she didn't pay for it, then someone gave it to her. A $15000 fiddle was never "free." I would trace the origin of the fiddle, and use a deflator to compute its worth at the time. I wouldn't pay gains on the whole thing.

[Brian EA]

Taxpayer sold her Violin that her aunt gifted her for $ 15,000. Is gain taxed at 15% max or ordinary rates. She is not a professional musician, for that matter she's not much of a musician at all. An imput is appreciated. Thanks

This violin discussion is driving me crazy. Could we have a little violin music to calm this situation

[Dennis V]

Changing info

I just found out the Violin was made in Europe in the 1700's and is worth much more than she thought. I guess that makes it an antique, which makes it a collectible, which makes it taxed at ordinary tax rates; sound correct? Thanks Jainen for you input here.

It's funny how the perspective on this issue changes as more information is obtained. I think you would be hard-pressed to deny that a 200+ year old violin is not an antique, subject to the 28% tax rate.

[John of PA]

Violin music just a click away

Brian,
Great Idea. Just go to WRTI.org. Click MP3 in the upper left corner, and beautiful violin music will play in the background as you work. I usually do this late at night to keep me going.

[Brian EA]

Brian,
Great Idea. Just go to WRTI.org. Click MP3 in the upper left corner, and beautiful violin music will play in the background as you work. I usually do this late at night to keep me going.

Thanks Pal, I am a country boy and as Snag says: we call it a fiddle

[Chief]

Violin vs. Fiddle Music

Hey guyes the difference between a violin and a fiddle are the strings used. Both are acoustic; the violin uses nonmetallic and the fiddle uses steel strings. The sound is quite different. The violin is soft soothing music; the fiddle, loud hoe down music. The violin started in Europe; the fiddle in the hills of Scotland.
Brian, you're not the only country hick around. So are many of us.

[John of PA]

By Gollie

Bye Gollie, you can bet your fiddle strings, that you'all best get back to reckoning with those tax returns and keep them a moving; I suspect a reckon that April 15th is a coming on like a tornader out of nowhere.

[Chief]

Tornader

John of PA, you're funny.

[Matt Sova]

Can you imagine

Parents sign their kid up for violin lessons and he excels at it. They have dreams of seeing him perform some classical music at Carnegie Hall some day. When he gets older the only time they see him play is when he plays the fiddle in the shooo-weee band at a dive of a watering hole.

[Chief]

Yes, More Power to the Kid

Would love to shake with his music.