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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4436
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Hi, This is a general question about capital gains taxes

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Hi, This is a general question about capital gains taxes: Let's say I sell a stamp collection that I have had for several years, and it has gained in value. I am selling it for over $600. Do I report the (let's say) $1,000 I sell it for as personal income? Is it taxed on the $1,000, or on the difference between what I paid for it and the $1,000? Thank you.

Dear Friend,

 

You can sell it off as a personal income. It is not taxed on $1000 but on the capital gain, i.e. the difference between what you paid and $1000.

 

I hope this helps...

Warm Regards,

Rakhi Vasavada and other Finance Specialists are ready to help you
Customer: replied 5 years ago.
If the difference between what I paid and what I sell it for would be less than $600, even though the selling price was more than $600, do I need to report it to the IRS? Thank you.

Dear Friend,

 

Yes, you will need to report this amount in your returns. For basic information, you may refer to http://www.fairmark.com/capgain/basic.htm

 

I hope this helps...

Warm Regards,

Rakhi Vasavada and other Finance Specialists are ready to help you
Customer: replied 5 years ago.

So, am I paying tax on the $1,000 selling tax plus the capital gain? Thank you.

Dear Friend, you shall be paying on $1000 minus the cost. This is on the amount in excess of your cost. I hope this helps..Warm Regards,
Rakhi Vasavada and other Finance Specialists are ready to help you