Private sale and taxes question

The #1 community for Gun Owners in Indiana

Member Benefits:

  • Fewer Ads!
  • Discuss all aspects of firearm ownership
  • Discuss anti-gun legislation
  • Buy, sell, and trade in the classified section
  • Chat with Local gun shops, ranges, trainers & other businesses
  • Discover free outdoor shooting areas
  • View up to date on firearm-related events
  • Share photos & video with other members
  • ...and so much more!
  • vxtip

    Sharpshooter
    Rating - 100%
    4   0   0
    Jul 23, 2008
    330
    16
    West of somewhere
    I tried Google and didn't get an answer. My question is if I sell a gun do I have to pay any tax on what I collect? I was just wondering about this and hadn't put much thought into it. If there is a tax, how and who would it be paid to?
     

    Classic Liberal

    Sharpshooter
    Rating - 100%
    10   0   0
    Apr 12, 2012
    716
    18
    Do you collect tax at a garage sale? That hopefully answers it for you.
    The only way I know of where you would have to collect and pay a tax is if you do so as a business where you have been issued a Retail Merchants Certificate after submitting a BT-1 form.
     

    shibumiseeker

    Grandmaster
    Rating - 100%
    49   0   0
    Nov 11, 2009
    10,708
    113
    near Bedford on a whole lot of land.
    Indiana sales tax as has been said, no. But technically if you sell something for more than you bought it for the IRS wants tax on the difference minus depreciation as income. Heck, Indiana probably wants their cut too as income tax.

    I learned long time ago to never mention such things to my accountant.
     

    Libertarian01

    Grandmaster
    Site Supporter
    Rating - 100%
    3   0   0
    Jan 12, 2009
    6,006
    113
    Fort Wayne
    To Vxtip (et alia),

    As you are required with ANY investment you are legally required to report ANY capital gains for income tax puposes for yourself.

    Example: You buy one (1) pound of gold for $10,000 many years ago. Today you sell it for $26,480. So you have made a profit (capital gain) of $16,480. Legally you are to report this on your income tax statement.

    A firearm is NO different.

    After the latest fiscal cliff fiasco (which cost me two (2) nickels in bets:xmad:) the current capital gains rate is 20% of the appreciation of the asset. This profit may be offset by other losses.

    Enforcement? That is another issue entirely. I am only answering what the law requires.

    Regards,

    Doug
     

    kludge

    Grandmaster
    Rating - 100%
    5   0   0
    Mar 13, 2008
    5,360
    48
    Example: You buy one (1) pound of gold for $10,000 many years ago. Today you sell it for $26,480. So you have made a profit (capital gain) of $16,480. Legally you are to report this on your income tax statement.

    Doug

    I love it how we get taxed on the inflation caused by the government. It's a scam I tell ya.
     

    42769vette

    Grandmaster
    Industry Partner
    Rating - 100%
    52   0   0
    Oct 6, 2008
    15,222
    113
    south of richmond in
    To Vxtip (et alia),

    As you are required with ANY investment you are legally required to report ANY capital gains for income tax puposes for yourself.

    Example: You buy one (1) pound of gold for $10,000 many years ago. Today you sell it for $26,480. So you have made a profit (capital gain) of $16,480. Legally you are to report this on your income tax statement.

    A firearm is NO different.

    After the latest fiscal cliff fiasco (which cost me two (2) nickels in bets:xmad:) the current capital gains rate is 20% of the appreciation of the asset. This profit may be offset by other losses.

    Enforcement? That is another issue entirely. I am only answering what the law requires.

    Regards,

    Doug

    Doesnt the profit have to be 600 dollars or above for this to apply?

    Im asking not telling, I dont know a whole lot about tax issues
     
    Top Bottom