I Want to Sell My Diamond – but will I get killed on the taxes ?

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Well look at you, all eager to get a super early start on those tax filings.  While most people wait a little longer before this is a concern, an even greater number of the masses (the Procrastinator Posse) wake up on April 14th with an “uh oh,” and a frantic call to their accountant.  You, however, are all set to turbo tax your way to an early return.  This gets you thinking “…What else can I make a nice profit on this year?  Well, I have these diamond earrings I got in the early 90s…set in the shape of Mickey Mouse’s head…that I wouldn’t be caught dead in.  I know I can get a pretty gorgeous penny for these puppies.  But wait!  What kind of taxes will I have to pay on this sale next year??”

Sound familiar?

Well good news, financially responsible friends!  The tax laws are (finally) in your favor.  While tax regulations governing money earned on personal items sold naturally vary from state to state, the general consensus is that money garnered from the (online) sale of an item doesn’t need to be reported if the sale price is less then the original price.

Well that certainly is comforting, isn’t it?

Here’s the breakdown from Findlaw.com:

“Reporting Profit on Appreciated Assets Sold Online

Reportable gains on online sales of items such as antiques, art, and collectibles should be reported to the IRS where the sales price is more than the cost of the item. If, for example, you sold a vintage automobile online for a profit, you should report this gain. Depending on the nature of the online sale, the gain may be reported as business income or capital gains.”

The good news here is that since every diamond on earth will always be resold for less than the retail price, you are pretty much in the clear, tax-wise, when selling that gem.

The Best news is that when selling your diamond with Diamond Lighthouse you are going to get a lion’s share of cash returned to you.  By showcasing your diamond to the top tier of professional diamond buyers in the industry, all who make competitive bids on your precious property, you ultimately are going to enjoy a paramount profit – with a process that is anything but taxing.

Learn more here.

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*disclaimer: Diamond Lighthouse is not a tax advice professional, and you should consult a tax accountant in your state for the most accurate, up to date information regarding all tax laws.  

-Joe Leone

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