| Discussion Forum: Thread 351866 |
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| | | Author: | StickyBrickit  | | Posted: | Dec 23, 2023 10:45 | | Subject: | Valuing my entire stock for tax purposes | | Viewed: | 104 times | | Topic: | Help | |
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| I currently have a regular 9-5 Mon-Fri job in which I earn about £35k per year
before tax (I am in the UK). I also sell Lego as a small-scale side hobby and
so far sell at a rate which means there are no tax implications (
in the UK).
I have been collecting Lego for years and estimate I probably have around £50k
at current fair market value. I am about to purchase a house and want to sell
off as much of my collection as I can over the next two years so that when our
agreed 2-year fixed mortgage is up I can pay a big chunk off and get a better
mortgage deal.
My issue is that if I sell most of the Lego off in that time period it will basically
count as income and be subject to tax. Tax only has to be paid on profit however
so if I can show what the Lego cost me to buy then I can offset this against
any tax I will have to pay.
Unfortunately I do not have clear proof of what I paid for most of it. Proof
of purchases in the last year or so I can probably get hold of invoices from
Bricklink, eBay etc. I can show on PayPal that I bought items as well although
I don't know if this counts as being good enough for stock valuation.
Has anyone had to have a large amount of Lego valued for tax purposes and if
so how did you do it? Does anyone know if showing payments from PayPal, banks
etc is enough, or do I need proper invoices? What about items I bought from
places like Facebook Marketplace, which were just cash-in-hand and paid for on
collection?
Essentially I need a way to show what I paid for the collection that would be
acceptable from a tax valuation perspective.
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| | | | | Author: | 1001bricks | | Posted: | Dec 23, 2023 14:30 | | Subject: | Re: Valuing my entire stock for tax purposes | | Viewed: | 43 times | | Topic: | Help | |
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| | | I am about to purchase a house and want to sell
off as much of my collection as I can over the next two years so that when our
agreed 2-year fixed mortgage is up I can pay a big chunk off and get a better
mortgage deal.
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Unfortunately, don't expect MUCH on a big inventory sale.
I'd say get 20% of the total selling price is already good.
I usually recommend to better make 50%+ sales, and sell the remaining in bluk
or quickly on eBay - you may get more money this way.
| | Essentially I need a way to show what I paid for the collection that would be
acceptable from a tax valuation perspective.
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Of course ANY proof you can get/keep is the best way.
Otherwise, make a list - like using BrickStore - set it to the average price
sold, assume you bought at 50% of this, then you get an approx cost.
Save this list locally, read-only.
I don't know your place, but they may not ask you for proofs when you give
the number.
But IF they control and ask you for proofs, you've at least to show the more
you can, and a DECENT and honest evaluation of the remaining, at least.
It's a risk you're taking, but you know, when keeping no track and paying
cash, it's what you're exposed to. So if you're missing data, be
honest and the lower you can may help you.
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| | | | | | | Author: | wildchicken13 | | Posted: | Dec 23, 2023 15:32 | | Subject: | Re: Valuing my entire stock for tax purposes | | Viewed: | 47 times | | Topic: | Help | |
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| In Help, 1001bricks writes:
| | Unfortunately, don't expect MUCH on a big inventory sale.
I'd say get 20% of the total selling price is already good.
I usually recommend to better make 50%+ sales, and sell the remaining in bluk
or quickly on eBay - you may get more money this way.
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In Help, StickyBrickit writes:
| | I am about to purchase a house and want to sell
off as much of my collection as I can over the next two years
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It sounds like StickyBrickit is planning to sell their collection over the course
of the next couple years, so they can probably get more than 20% of the market
value. They might not sell everything, but they'll get more money.
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United Kingdom, England
France, Provence-Alpes-Côte d'Azur
USA, Illinois