smh@mhuxl.UUCP (henning) (01/06/86)
> Can anyone help me out regarding the circumstances in which one can deduct > the cost of a safe deposit box? I am holding some fairly > valuable old coins and proof sets in my box, but I don't know if that counts > as income producing property before they are sold,... A profitable sale of a hobby collection held long term is taxable as a capital gain. LOSSES ARE NOT DEDUCTIBLE. EXPENSES MAY ONLY BE ALLOWED UP TO THE AMOUNT OF YOUR INCOME. Remaining expenses are disallowed. If you show a profit in 2 of 5 consecutive years you pass the test of presumption of profit seeking and the IRS may permit your expenses to exceed your income. If you do not want to make a declaration of presumption, you may file Form 5213 to postpone for 4 years your declaration of presumption.