Howdy firstrte-ga,
A reminder of the "Important Disclaimer: Answers and comments provided on
Google Answers are general information, and are not intended to substitute
for informed professional medical, psychiatric, psychological, tax, legal,
investment, accounting, or other professional advice."
Let's deal with the sale of the stamp collection first. The United States
Internal Revenue Service (IRS) web site provides the answer to that question
in their Publication 544 (2004), "Sales and Other Dispositions of Assets."
Chapter Two of that publication has a section titled "Precious Metals and
Stones, Stamps, and Coins" which is applicable to your question.
http://www.irs.gov/publications/p544/ch02.html
"Gold, silver, gems, stamps, coins, etc., are capital assets except when
they are held for sale by a dealer. Any gain or loss from their sale or
exchange generally is a capital gain or loss. If you are a dealer, the
amount received from the sale is ordinary business income."
Very straight forward, and as you have not said you are a dealer, the rest
of this answer is on that basis.
The above gain, or loss in your case, will be entered on your Schedule D
of your tax return, "Capital Gains and Losses." To determine if it is a
"Short-Term" or "Long-Term" capital gains, we need to refer to the IRS
"2004 Instructions for Schedule D (2004)" publication.
Chapter 1 of that document defines short-term and long-term.
http://www.irs.gov/instructions/i1040sd/ch01.html
"Separate your capital gains and losses according to how long you held or
owned the property. The holding period for short-term capital gains and
losses is 1 year or less. The holding period for long-term capital gains
and losses is more than 1 year. To figure the holding period, begin counting
on the day after you received the property and include the day you disposed
of it."
Now, for the capital gains from the limited partnership. In most case, that
gain will show on the K-1 form, or "Partner?s Share of Income, Deductions,
Credits, etc.," that you will receive from the partnership.
On line 8 or 9a (or both) of that form, there will be an entry or entries,
depending on if it is a short-term capital gain or loss, or a long-term
capital gain or loss. This entry (or entries) should reflect the capital
gain from the sale of the capital asset that you reference.
Back on Schedule D ("Capital Gains and Losses") there is Line 5, for the
entry of "Net short-term gain or (loss) from partnerships, S corporations,
estates, and trusts from Schedule(s) K-1" and line 12, for the entry of
"Net long-term gain or (loss) from partnerships, S corporations, estates,
and trusts from Schedule(s) K-1."
http://www.irs.gov/pub/irs-pdf/f1040sd.pdf
The short-term or long-term nature of the gain from the sale of the capital
asset of the limited partnership will determine where you place the entry
on your Schedule D.
If, as an example, both the loss and sale are considered long-term, then the
loss from the sale of the stamp collection would go as an entry on line 8 in
Part II of Schedule D ("Long-Term Capital Gains and Losses ?A ssets Held More
Than One Year") and the gain from the limited partnership would flow from
Line 9a ("Net long-term capital gain (loss)") of your K-1 ("Partner?s Share
of Income, Deductions, Credits, etc.") to Line 12 in Part II of Schedule D
("Net long-term gain or (loss) from partnerships, S corporations, estates,
and trusts from Schedule(s) K-1" and the loss would offset the gain. Whew!
If you need any clarification, please feel free to ask.
Search strategy:
Personal knowledge of K-1s and Schedule D from being part of a partnership.
Search on the IRS web site for: stamps | investment
http://search.irs.gov/web/query.html?col=irsweb&qt=stamps+%7C+investment
I examined the forms and publications from the IRS web site, as referenced
above.
Looking Forward, denco-ga - Google Answers Researcher |
