Jewelry win tax question

R

rogareyn

New member
How do you deal with taxes on a large Jewelry win? Do you just go with the ARV or can you get it appraised and go by that? How do you find the FMV?

This isn't something I can just walk into a jewelry store here in my small town and see how much they are selling for or find an ad for.

I told the person who did our taxes this year about the win, she said that wins have a higher tax then earned income, is that so?

Has anyone won jewelry and sold it? How did that work out?

Thanks for your help.
 
I would get it appraised. If the appraisal value is lower than the ARV, use that and if the ARV is lower, use the 1099. Make sure you keep copies of everything in case you are audited.

Now, as for wins, keep every losing lottery ticket, gambling losses... you have to offset the wins.

Congratulations on your win! :sunny:
 
Prizes are not taxed higher than regular income. They are considered income and combined with your regular income for your total income which is taxed at the rate for that tax bracket.

Be careful with who prepares your tax return. Many make mistakes and aren't familiar with handling certain things. Especially such places like H&R Block. If your tax preparer is already giving you misinformation such as that, you should think of finding someone else.
 
rogareyn said:
Thank you for your answers. It was H&R Block who told me that.
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I'd find a reputable CPA. You wouldn't believe how many tax returns from places like H&R Block have to be redone every year. CPA's aren't cheap but worth it considering what places like H&R Block are probably costing you in what they miss in getting you for your fullest refund.
 
Excellent advice from Lidarkside. I use a CPA and he is well worth every penny. My SIL used to work for H&R Block and they apparently receive very superfical training (at least she did, this may vary). She said she got more training on how to make biscuits at Hardees than she did on how to prepart taxes from H&R Block.
 
tharedhead said:
Excellent advice from Lidarkside. I use a CPA and he is well worth every penny. My SIL used to work for H&R Block and they apparently receive very superfical training (at least she did, this may vary). She said she got more training on how to make biscuits at Hardees than she did on how to prepart taxes from H&R Block.
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:laughing:

Swear to God, I believe someone who took it said it was a two-hour course! :scratch:
 
H&R Block?

Shudder....

I have a staff of accountants who do my taxes (the joys of being a rich gay male! lol) and would never use H&R Block.

That's not arrogance, that's honesty. They are not accountants, they are taught for a few weeks tax law.

To get jewelry valuated, go to a jewelry and ask for the insurance value of it. Not that you are going to sell it.

ANd yes, you will have to pay them for their time.

Do realize that you might be lucky to get half of the value when you sell it. Jewelry pieces, especially if they are 'one of a kinds' rarely sell well.
 
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