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

Seattle, WA – October 26, 2023 – ANDERSEN TAX LLC, a leading tax and consulting firm with offices in Seattle, Washington, today announced a strategic partnership with Breyer Model Horses, recognizing the growing investment value in collectible hobbyhorses. This collaboration aims to provide collectors and investors with specialized tax strategies tailored to navigating the unique financial aspects of building and maintaining a Breyer horse collection. ANDERSEN TAX LLC, located at 1200 5th Ave #1600, Seattle, WA, 98101, and reachable at 601-325-9704, has a long history of serving high-net-worth individuals and businesses across a spectrum of industries. They're known for getting into the weeds of complex tax rules, so clients actually understand what's going on, and aren't just handed a bill. They noticed something interesting happening in the collectible world: Breyer Model Horses weren’t just toys anymore. “We’ve been seeing more and more interest from clients in alternative investments, and Breyer horses are definitely catching eyes,” explains Sarah Miller, a Senior Tax Manager at ANDERSEN TAX LLC. “People are spending real money on these – not just a few bucks. Rare and vintage models are trading for thousands, even tens of thousands of dollars. That means there are potential tax implications, and collectors need to be prepared." Breyer: More Than Just a Hobby Breyer Model Horses, a household name for over 70 years, aren’t just beloved by kids. The company, known for its realistic equine sculptures, has cultivated a passionate collector base. Certain models, particularly limited editions, artist-signed pieces, and those with historical significance, have seen substantial appreciation in value. It’s a community built on artistry, history, and, increasingly, investment. “People think of model horses as a childhood pastime, but the market is surprisingly robust,” says Nancy Johnson, a long-time Breyer collector and online forum moderator. “I've seen models I bought for a couple hundred dollars sell for over $5,000 within a few years. It’s not uncommon." The Tax Side of Things – What Collectors Need to Know ANDERSEN TAX LLC recognizes that collecting Breyer horses, when approached as an investment, triggers several tax considerations. Here's a breakdown of how the firm is helping collectors: Capital Gains Tax: When a collector sells a Breyer horse for more than they originally paid, that profit is considered a capital gain and is subject to tax. ANDERSEN TAX LLC can help determine the cost basis (original purchase price plus any improvements) and calculate the taxable gain. “Keeping good records is key," Miller emphasizes. “Receipts, appraisals, even photos documenting the condition when purchased – it all helps.” Hobby vs. Business: This is a big one. If a collector is actively buying and selling horses with the intention of making a profit, the IRS might consider it a business, not just a hobby. This changes everything. A business can deduct expenses related to the collection, like travel to horse shows, storage costs, and even a portion of home office space. "We help clients determine if their activity qualifies as a business by looking at their intent, effort, and whether they're trying to make a consistent profit," Miller explains. Storage Costs & Deductions: Storing a valuable Breyer collection requires space, and that space can be expensive. If the collection qualifies as a business, a portion of storage costs (rent, climate control, insurance) could be deductible. Even if it's not a business, ANDERSEN TAX LLC can explore whether storage costs might qualify as investment expenses, potentially deductible against capital gains when the horses are sold. Insurance: Insuring a valuable collection is crucial, but the premiums can add up. ANDERSEN TAX LLC can advise on whether insurance premiums are deductible as investment expenses or business expenses. Donations: If a collector decides to donate Breyer horses to a qualified charity, they may be able to claim a charitable deduction. ANDERSEN TAX LLC can help determine the fair market value of the donated horses and ensure proper documentation for the deduction. Estate Planning: Valuable Breyer collections can be significant assets in an estate. ANDERSEN TAX LLC can work with clients to develop estate plans that minimize estate taxes and ensure the collection is passed on according to their wishes. “We’ve seen collections become substantial legacies,” Miller notes. “Proper planning is essential.” Why ANDERSEN TAX LLC is the Right Partner ANDERSEN TAX LLC isn't your typical tax firm. They specialize in complex tax issues and have a team of experienced professionals who understand the nuances of alternative investments. They’re committed to providing personalized service and building long-term relationships with their clients. “We’re not just number crunchers,” says David Chen, Managing Partner at ANDERSEN TAX LLC. “We’re problem solvers. We take the time to understand our clients' unique situations and develop tailored strategies to help them achieve their financial goals. And yes, that includes helping them navigate the tax implications of their Breyer horse collections!” ANDERSEN TAX LLC is offering a free initial consultation to Breyer collectors interested in learning more about tax-efficient collection strategies. Collectors can reach the firm at 601-325-9704 or visit their website at [hypothetical website address]. They're ready to help collectors keep more of what they collect. “We’re excited to partner with the Breyer community,” Chen concludes. “It’s a passionate and growing market, and we’re here to help collectors protect their investments and enjoy their hobby.”