Nice. I still wonder what he keeps.
If the auction house keeps 30% then that is $450,000 for them.
So the seller gets the remaining $1,050,000.
What is the tax on this. Is it capitol gains of 25% or is it income tax for Fed and State?
Sounds like he keeps $600,000 to $750,000 which is still a huge windfall for a poor man buried in debt, but not $1.5 million in his pocket.
This is the beauty of auctions. Items you can’t price will price themselves. If they tried to sell it for $250,000 it would have gone immediately and they would never have known how much more it was worth and gotten much more, even after fees and taxes.
The auction house gets a half million for their trouble so that is a nice take for 5 minutes worth of work.
I am assuming the auction fee is 30%. I don’t know first hand. Just saying, the guy did great, but it must be nice to run an auction house that does nothing but bring together buyers and sellers and skims all the cream off the top.