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Posted by Billy on August 30, 2007, 11:20 pm
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>> My friend is an ex violinist for London Symphony.
>>
>> He is married to a US citizen, living in Syracuse, NY but is
>> not a citizen himself by choice.
>>
>> He purchased a violin in the UK 30 yrs.ago and used it for
>> his work, for $10K (US $ equivalent) and sold it in the US
>> recently to a collector for $35K.
>>
>> He asked me how this might be taxed?
>>
>> Is this a capital gain or collectible or taxable at all in
>> US?
> Was this used in his job? Did he depreciate it or should he
> have been depreciating it?
>
> In any case he has a gain upon sale and it would sure be
> taxable.
>
> If this is business equipment, it is reported on a 4797 and
> ends up ordinary income. If personal use property, long
> term gain, not a collectible unless the Secretary has
> determined that musical instruments are collectibles.
tks Art, was used in his profession while in UK but not
here. Not sure if it was depreciated but will find out.
Thge violin was sold to a collector here.
more later.
bw
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