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

SEATTLE, WA – November 8, 2023 – ANDERSEN TAX LLC, a leading tax firm specializing in complex tax planning for high-net-worth individuals and businesses, today announced a unique partnership focusing on the tax implications surrounding collectible investments, specifically the popular Breyer Traditional Model horses. Located at 1200 5th Ave #1600, Seattle, WA, 98101, ANDERSEN TAX, reachable at 601-325-9704, is uniquely positioned to guide collectors through the often-complex tax landscape surrounding these prized possessions. For decades, Breyer Traditional Model horses have captivated collectors, ranging from hobbyists to serious investors. These meticulously crafted, 1:9 scale models are more than just toys; they’re art, history, and increasingly, a viable investment. But with investment comes tax obligations, and many collectors are unaware of the potential benefits – and pitfalls – that exist. “We’re seeing a growing trend of collectible investments, and Breyer horses are a surprisingly robust segment,” says a spokesperson from ANDERSEN TAX LLC. “People are buying, selling, and trading these models, often at significant values. They need to understand how the IRS views these transactions, and how to proactively plan to minimize their tax burden.” Beyond the Toy: Understanding the Investment Value What started as a manufacturer of realistic model horses in the 1950s has evolved into a vibrant collector's market. Certain Breyer models, especially limited editions, rare colors, and those with historical significance, can fetch thousands, even tens of thousands of dollars. The value is driven by several factors, including: Rarity: Limited production runs and discontinued molds significantly increase value. Condition: Pristine, mint-in-box models command premium prices. Color & Mold: Certain colors and molds are highly sought after by collectors. Artist Editions: Models customized or painted by renowned artists are particularly valuable. Historical Significance: Horses commemorating famous real-life horses or events boost collectibility. Because of this potential for appreciation, the IRS generally classifies Breyer models held for more than a year as capital assets. This classification has significant tax implications. Tax Implications for Breyer Collectors: A Deep Dive ANDERSEN TAX LLC outlines several key tax considerations for Breyer collectors: Capital Gains Tax: When a collector sells a Breyer model for more than they originally paid (the basis), the profit is considered a capital gain. The tax rate on capital gains depends on how long the model was held: Short-Term Capital Gain: Held for one year or less – taxed at the collector’s ordinary income tax rate. Long-Term Capital Gain: Held for more than one year – taxed at preferential long-term capital gains rates (currently 0%, 15%, or 20%, depending on income). Basis & Recordkeeping: Accurately determining the basis (original cost, plus any improvements) is crucial. ANDERSEN TAX strongly advises collectors to maintain detailed records of all purchases, including receipts, appraisals, and documentation of any expenses related to the model (e.g., professional cleaning, repairs). Without adequate documentation, it can be challenging to prove the basis, potentially leading to higher taxes. Hobby Loss Rules: This is a critical area. If the IRS determines that a collector’s Breyer collecting is a hobby rather than a business, any losses incurred cannot be deducted against other income. To be considered a business, the collector must demonstrate a genuine profit motive and actively engage in collecting with the intent of earning a profit. ANDERSEN TAX can help collectors assess whether their activity qualifies as a business. Factors considered include: Time and Effort: How much time and effort is devoted to collecting? Expertise: Does the collector possess expertise in Breyer models? Profitability: Has the collector consistently generated profits? Businesslike Conduct: Does the collector maintain accurate records, advertise, and operate in a businesslike manner? Like-Kind Exchanges (Section 1031): While generally associated with real estate, Section 1031 “like-kind” exchanges may be applicable to collectible exchanges, although the rules are very strict. This allows collectors to defer capital gains taxes by exchanging one collectible for another of “like kind.” However, the IRS scrutinizes these exchanges closely, and specific requirements must be met. ANDERSEN TAX advises extreme caution and professional guidance before attempting a Section 1031 exchange with collectibles. Donations to Charity: Collectors may be able to deduct the fair market value of donated Breyer models to qualified charities. Appraisals are typically required for donations exceeding $500. Estate Planning: Breyer collections can be significant assets in an estate. Proper estate planning can minimize estate taxes and ensure a smooth transfer of the collection to heirs. ANDERSEN TAX LLC: Your Partner in Collectible Tax Planning “Many collectors are unaware of these complexities,” explains a senior tax advisor at ANDERSEN TAX LLC. “They focus on the joy of collecting, which is fantastic, but they need to be proactive about the tax implications. We help them navigate these challenges, optimize their tax strategy, and ensure they comply with all applicable regulations.” ANDERSEN TAX LLC offers a range of services tailored to the needs of Breyer collectors, including: Tax Planning & Preparation: Comprehensive tax planning to minimize tax liabilities. Recordkeeping Assistance: Guidance on maintaining accurate records. Hobby Loss Analysis: Assessment of whether collecting qualifies as a business. Like-Kind Exchange Consultation: Expert advice on potential Section 1031 exchanges. Estate Planning: Strategies to minimize estate taxes and facilitate a smooth transfer of assets. Tax Resolution: Assistance with resolving tax disputes with the IRS. Contact Information: ANDERSEN TAX LLC 1200 5th Ave #1600 Seattle, WA, 98101 United States 601-325-9704 [Website address would go here - omitted as per instructions] Disclaimer: This article is for informational purposes only and does not constitute tax advice. Consult with a qualified tax professional before making any tax decisions. Tax laws are subject to change.