Selling watches with big price tags - mechanics

[R35GTR]

Hey all - member here. Smalltime enthusiast who has happen to have gotten lucky several times. Curious for those who have done it: if you were to sell a high priced ($50-100k) piece to a place like Watchbox - What are the actual mechanics of the transaction? How are taxes on the sale handled (do I get a 1099 with the difference between cost and what I sold for)? What about having funds wired to my personal bank account - does that raise any concerns with my bank for AML?

I’m not a dealer/trader just a regular guy. Thanks.

[wesdaniel]

How it works - you contact them, send them pictures of your watch, box, cards, etc., they make an offer. If you accept, they send you an insured shipping label, you pack and ship. From the time they receive it, it takes about 24-48 hours for them to evaluate the watch mechanically and inspect it for any undisclosed damages. They contact you to confirm that it's good or to make their counter offer (I've had them counter offer on a few, but most have gone through as discussed) which you either accept or reject. If you reject it, they ship the watch back to you.

I'm not sure about the sales part of it as I've only ever traded. I doubt that they would send you a 1099 - they'd wire you the money or send to you some other way. They would send you something evidencing the purchase and price. My guess is that the reconciliation for your tax purposes is up to you. You have your original purchase receipt and you have your sales documentation to be able to net them out for tax purposes.

As to any AML concerns, my guess is that, if your bank is used to seeing large transactions and knows you, it won't be an issue. But, that's just a guess.

Good luck with the sale!