Auction Services Hampton Roads
LEGAL DOCUMENTATION
• inventory of the property
• auction house consignment contract
AUCTION SALES PROCESS
• Identify and inspect the property as to condition and value to determine if appropriate for sale
• Inventory the property,
• Execute the auction consignment contract,
• Auctioneer sells at public auction,
• Buyer’s payment is held in auctioneer’s escrow until the payment is verified
• Settlement payment is mailed to the owner within 30 days of the date of each auction sale(s).
AUCTION TERMINOLOGY
LOTS:
• A single item can be referred to as a “LOT.”
• Several items can be placed on a tray and or in a box and then sold as a single group – that group of items is referred to as a “lot” or a “box or tray lot.”
• The written settlement accompanying your check will be itemized as a “box lot” and or Tray lot along with the highest bid or the “hammer” price for that lot.
• The settlement will have no other description as to the contents of the box lot.
CHOICE:
• One or more items are grouped on the sales table.
• The highest bidder has his “choice” to purchase one or more of the items in that group. Once he has selected the items, other bidders may purchase their choice of the remaining grouped items and must also pay the highest “choice” bid price.
• The written settlement will show “choice” along with the quantity of the total choice items sold.
• There is no further description as to the contents of the choice lot.
TAXES:
Will I receive tax info (1099) from the Auction Gallery that sold my belongings? Do I have to pay income taxes on the property that I had previously purchased or received as a gift?
You should consult your accountant on reporting and paying taxes on all sales; also, IRS.GOV provides instructions.
To the best of my knowledge, an Auction Gallery does not issue 1099 because it is not the owner and only acts as your consignment agent to sell the property. As the seller/owner, you retain the title until the item is sold. The sale is completed by payment by the buyer to an auction house or other selling agent. The auction house or seller’s agent holds the money in escrow until the payment (check or credit card) is cleared, and those funds less commission and expenses are paid to you, thereby completing the sales contract.
It’s my understanding that a tax basis is considered $0 on the date that one received the item as a gift, or that amount paid for the item on the purchase date, or when determining a value in a deceased estate, the fair market value.
Any sales revenues realized from the item’s sale might be considered a capital gain. There are often expenses related to property sale, i.e., appraisals, commissions, service charges, freight, photography, etc., that may be applicable in the tax reporting process. Consult a CPA or www.IRS.gov for current law.
Nancy Alberts
Certified Senior Advisor (Ret.)
Moving On! Services LLC
Call for your free first visit.
(757) 393-1622
Moving On! Services LLC services all of Hampton Roads to Richmond Virginia, Central Virginia, and areas east to include York and Gloucester County, and the Eastern Shore. MOVING ON! provides a Single Point of Contact for as much or as little that needs to be done – related to the disposition of household items and personal property. First consultations are always free.
Our services include Downsizing Lifestyle Change, Appraisals and Auctions, Estate Liquidations, and Senior Move Specialists. Above all, we have the expertise for Aging in Place services. For example, Personal Shopping, Errand, Sort, Space Planning, Pack, Move, Unpack, Redecorate, Reorganize, Charitable Donations, Books & Bibles, Disposal of Surplus Possessions, Deep Cleaning, Organizing, and Redecorating.
