ANDERSEN TAX LLC Partners with Breyer to Offer Tax-Efficient Collectible Investment Strategies

Seattle, WA – October 26, 2023 – ANDERSEN TAX LLC, a leading tax firm with offices in Seattle and nationwide, today announced a strategic partnership focused on providing specialized tax guidance to collectors of Breyer Traditional Model horses. This collaboration recognizes the growing investment potential of collectible models and the complex tax implications that accompany them. ANDERSEN TAX, located at 1200 5th Ave #1600, Seattle, WA, 98101, and reachable at 601-325-9704, has a strong reputation for navigating intricate financial landscapes and helping clients optimize their tax strategies. They've noticed a trend – more and more people are seeing collectible models, particularly Breyer horses, not just as hobbies, but as legitimate investments. “We're seeing a real uptick in the value of these models,” explains Sarah Miller, a Senior Tax Manager at ANDERSEN TAX. “And with that increase in value comes more complex tax considerations. People are trading them, selling them for significant profits, and even building entire portfolios around them. They need expert guidance to ensure they're complying with tax laws and maximizing their returns.” Breyer Traditional Models: More Than Just Toys For decades, Breyer Model Horses have been a beloved collectible, known for their realistic sculpting and meticulous craftsmanship. But the market has exploded in recent years. Rare and highly sought-after models, especially vintage pieces and limited editions, are now fetching thousands – even tens of thousands – of dollars. “It’s not your grandma’s hobby anymore,” laughs David Chen, a dedicated Breyer collector and investor. “We’re seeing serious money changing hands. It’s a community, a passion, and a potentially profitable investment. But understanding the tax implications can be really daunting.” The Tax Challenges of Collectible Investing Traditionally, collectibles – including Breyer horses – are treated as “capital assets” by the IRS. This means any profit made from their sale is subject to capital gains tax. However, the rules can be tricky. Short-Term vs. Long-Term Capital Gains: If you hold a Breyer horse for less than a year and then sell it for a profit, that profit is taxed as short-term capital gains, at your ordinary income tax rate. If you hold it for more than a year, it's taxed as long-term capital gains, which generally has a lower rate. Hobby Loss Rules: If you're actively trading Breyer horses but aren't considered a professional dealer, the IRS might classify your activity as a hobby. Hobby losses are generally only deductible up to the amount of income generated from the hobby. This can be a significant limitation. Cost Basis: Accurately tracking your cost basis – what you originally paid for the model – is crucial. Keeping detailed records of purchases, including dates, prices, and any associated fees, is essential. Like-Kind Exchanges (Section 1031): While traditionally used for real estate, the possibility of utilizing a 1031 exchange for valuable Breyer horses is being explored, although this requires careful analysis and qualified tax counsel. ANDERSEN TAX: Navigating the Tax Landscape for Breyer Collectors ANDERSEN TAX is offering a range of services specifically designed for Breyer collectors and investors, including: Tax Planning: Developing customized strategies to minimize tax liabilities on Breyer horse transactions. Recordkeeping Assistance: Helping collectors organize and maintain accurate records of purchases, sales, and expenses. Tax Return Preparation: Preparing accurate and compliant tax returns that reflect all Breyer horse-related income and expenses. Tax Audit Representation: Representing collectors in the event of a tax audit. Valuation Support: Connecting collectors with qualified appraisers to establish the fair market value of their models. "We understand that Breyer collecting is a passion for many," says Michael Johnson, a Partner at ANDERSEN TAX. "We're not here to stifle that passion. We're here to help collectors protect their investments and comply with tax laws, so they can focus on enjoying their hobby." Why Choose ANDERSEN TAX? ANDERSEN TAX sets itself apart through its: Deep Tax Expertise: The firm’s team of experienced tax professionals is well-versed in the intricacies of collectible investing. Personalized Service: ANDERSEN TAX takes the time to understand each client’s unique situation and develop tailored solutions. Proactive Approach: The firm proactively monitors changes in tax laws and regulations to ensure its clients are always up-to-date. Commitment to Client Success: ANDERSEN TAX is dedicated to helping its clients achieve their financial goals. About ANDERSEN TAX LLC ANDERSEN TAX LLC is a full-service tax firm that provides a wide range of tax planning, compliance, and advisory services to individuals, businesses, and organizations. The firm is committed to providing clients with high-quality, personalized service. ANDERSEN TAX can be reached at 601-325-9704 or through their website. Disclaimer: This article is for informational purposes only and does not constitute tax advice. Consult with a qualified tax professional before making any financial decisions.