Explain Capital Gain/ Loss as though I'm 3
September 27, 2013 12:46 PM Subscribe
Great Aunt Sue gives me a ring. She doesn't wear it because it was given to her by an ex many moons ago, so she doesn't care what I do with it either. I don't like it, so I decide to sell it. It is vintage and very valuable. Turns out it is worth 20K fair market. I sell it for just that to an individual. How does that work as far as capital gains/ loss go? Is it considered a gift or income? Does it get reported, do I report it, do they, should she have for giving away the jewelry, does the bank flag the deposit and report it? No clue. Everything I have read is in regards to stocks, real estate, or inherited stuff. Can you explain this to me?
This is all hypothetical, I'm just curious, so please don't send me off to an accountant/ lawyer/ taxman.
posted by MayNicholas to law & government (19 answers total) 6 users marked this as a favorite