@AtlantaTed wrote:
Thank you for that wonderfully detailed reply.
I am not a professional musician only a non-paid amateur. My parents purchased the instrument for me (I was in my teens) new around 1972, so it is fifty years old. It is a discontinued model and is highly sought after by pros.
Appears it will likely sell for between $6K-$6.5K. I’m not sure if I need to report the sale this quarter or year end, or if at all.
thanks for everyone’s feedback. Much appreciated.
Under the circumstances you describe, it might be a "collectible" even if it is not an antique. The problem is, the definition of a collectible is "anything the IRS designates as a collectible" (plus, a few specific items, but the list of specifics does not include musical instruments). And I can't find an authoritative list of what the IRS considers collectible. You will probably have to make your own determination. If you decide the item is a collectible, you will indicate that in Turbotax and pay the higher tax rate. If you don't indicate that it is a collectible, you will pay a lower tax rate (15% or 20% instead of 22% or 28%). Then if audited, you would need to make an argument of why it is not a collectible (such as, it was sold to a working musician, perhaps.). Most people are never audited.
If you decide to pay estimated taxes, the schedule is as follows
| Income received |
estimated payment due |
| Jan 1-March 31 |
April 15 |
| April-May |
June 15 |
| June-August |
Sept 15 |
| Sept-Dec |
Jan 15 |
