Years ago I lent someone money, secured by jewelry. He defaulted and I got the jewelry. At the time I was covered, but the market has declined so I am out about 50%. I have given the jewelry to a jeweler who is selling it off very slowly. I understand I cannot take a loss until it is all sold.
Could my wife buy it at a fair market value so I can take the loss? I
would be out the sales tax, but it would be worth it. We file a joint
return, but I own it.
I have absolutely NO interest in anything the IRS is going to give me
a hard time over.
- posted 8 years ago