Costly Coin Find?

In a recent message "Mr. Jaggers" lugburzman[at]yahoo[dot]com wrote:


"RF" wrote in message
ps.com...
On Oct 22, 8:36 am, "Bruce Remick" wrote:
I can't help but wonder if the finder of that BU DDO 1969-S Lincoln
Cent
in a roll search (CW, Oct 29) will be subject to the same income tax
obligation as the fellow who caught Barry Bond's record home run ball. I
recall that the guy who caught the Bonds ball chose to sell it because he
couldn't handle the 5-figure income tax bill the IRS claimed was due
them.
If the DDO cent is worth $80 grand or more, based on recent auction
results,
the poor finder may have to come up with a 5-figure payment to Uncle Sam
just to keep the coin. Ridiculous, if true.

If IRS never made any claim about tax owed. It was unnamed "tax
experts" that made that claim. Just as many claimed the tax wouldn't
be due until sold but their opinions were buried on page 20 since they
weren't sensational enough.

We are all "tax experts," in that we have all either paid taxes, or know
someone who has. The experience is never pleasant, and very often downright
unpleasant. No amount of reassurance will ever change public perception of
the process. But let's change the subject to something less disagreeable,
like root canal therapy.

I dislike paying tax as much as anyone, but I do know that if I have a large
tax on my income then my income must be pretty large too! That is a comfort.

--
Tony Clayton
Coins of the UK : http://www.coins-of-the-uk.co.uk
Sent using RISCOS on an Acorn Strong Arm RiscPC
.... Please think when you drink....

In a recent message "note.boy" wrote:



In the UK the capital gains tax is lessened as the tax man takes into
account how long the coin, or whatever, has been owned.

For example the tax on a coin bought in 1960 for £100 and now worth £500
would attract less tax than a coin bought in 1990 for £100 and now worth
£500. Billy

In fact neither would attract any tax as the gain is below the relevant threshold.
For this reason selling individual items is better than selling the lot at once.




--
Tony Clayton
Coins of the UK : http://www.coins-of-the-uk.co.uk
Sent using RISCOS on an Acorn Strong Arm RiscPC
.... I can SPELL, I just can't TYPE worth a hoot !

In a recent message tony cooper wrote:

[snip]
I'm not sure he's right about the Bonds baseball. I know if you win a
major item in a contest that you're obligated to pay taxes on the gain
for the tax year the gain was incurred. Win an automobile in a
drawing, for example, and you owe taxes based on the value of the
automobile. Doesn't make any difference if you keep it or sell it.

I can't see how the Bonds baseball is any different from winning
something in a contest. *Buy* the baseball, though, for a
ridiculously low price and you don't owe taxes on the gain until you
sell it.

Here's some discussion on the baseball question:

http://www.gta4.tv/forums/index.php?showtopic=782137 At least one tax
attorney says the tax is due just for catching the ball.


In the UK a lottery or raffle win is not taxable. If you win a car (automobile
in US) there is no tax payable.

--
Tony Clayton
Coins of the UK : http://www.coins-of-the-uk.co.uk
Sent using RISCOS on an Acorn Strong Arm RiscPC
.... Hire the morally handicapped

Tony Clayton wrote:

In the UK a lottery or raffle win is not taxable. If you win a car (automobile
in US) there is no tax payable.

Here in the colonies, one of the stiffest tax rates is the 'prizes and
awards' tax. I once won $1000 on a lottery ticket. When I cashed it
in, they immediately took $50 right off the top, giving me a check for
$950. Then I had to declare my winnings for income tax purposes, being
taxed at 40%. From $1000 supposed winnings, I ended up with about $550.

On Thu, 08 Nov 2007 04:25:52 -0800, Jud wrote:


Tony Clayton wrote:

In the UK a lottery or raffle win is not taxable. If you win a car (automobile
in US) there is no tax payable.

Here in the colonies, one of the stiffest tax rates is the 'prizes and
awards' tax. I once won $1000 on a lottery ticket. When I cashed it
in, they immediately took $50 right off the top, giving me a check for
$950. Then I had to declare my winnings for income tax purposes, being
taxed at 40%. From $1000 supposed winnings, I ended up with about $550.

I've never won a legitimate lottery (1) so I don't have any experience
in this. With gambling winnings, one can offset winnings with losses
if the losses can be proved. Could you have provided non-winning
lottery tickets to offset that win?

(1) I do seem to "win" some sort of international lottery at least
once a week. I receive emails from generous people telling me so.

--


Tony Cooper
Orlando, FL

On Nov 8, 9:12?am, tony cooper wrote:
On Thu, 08 Nov 2007 04:25:52 -0800, Jud wrote:

Tony Clayton wrote:

In the UK a lottery or raffle win is not taxable. If you win a car (automobile
in US) there is no tax payable.

Here in the colonies, one of the stiffest tax rates is the 'prizes and
awards' tax. I once won $1000 on a lottery ticket. When I cashed it
in, they immediately took $50 right off the top, giving me a check for
$950. Then I had to declare my winnings for income tax purposes, being
taxed at 40%. From $1000 supposed winnings, I ended up with about $550.

I've never won a legitimate lottery (1) so I don't have any experience
in this. With gambling winnings, one can offset winnings with losses
if the losses can be proved. Could you have provided non-winning
lottery tickets to offset that win?

(1) I do seem to "win" some sort of international lottery at least
once a week. I receive emails from generous people telling me so.

--

Tony Cooper
Orlando, FL

First of all, I'd like to know in which "colony" Jud resides. I've had
to report winnings from the Connecticut lottery a couple of times and
never had to pay more than my regular federal and state income tax
rates.

And yes, you can deduct provable losses from your win....but, the way
it is done is not exactly fair. The losses must be claimed on the
"itemized deductions" form. For a single person like me with very few
allowable deductions it didn't work out.....my "standard deduction"
was higher.

"Tony Clayton" wrote in message
...
In a recent message "note.boy" wrote:



In the UK the capital gains tax is lessened as the tax man takes into
account how long the coin, or whatever, has been owned.

For example the tax on a coin bought in 1960 for £100 and now worth £500
would attract less tax than a coin bought in 1990 for £100 and now worth
£500. Billy

In fact neither would attract any tax as the gain is below the relevant
threshold.
For this reason selling individual items is better than selling the lot at
once.




--
Tony Clayton
Coins of the UK : http://www.coins-of-the-uk.co.uk
Sent using RISCOS on an Acorn Strong Arm RiscPC
... I can SPELL, I just can't TYPE worth a hoot !

I was thinking of a collector auctioning a collection in the one go, the tax
involved is not as much as it's assumed to be given the allowance for how
long a note has been owned.

I can see the attraction of having an auction like the Austin auction and
the Pringle auction of some years ago, collectors are proud of their
collection and like to see it all nicely listed in an auction catalogue.

Billy

On Nov 8, 7:25 am, Jud wrote:
Tony Clayton wrote:
In the UK a lottery or raffle win is not taxable. If you win a car (automobile
in US) there is no tax payable.

Here in the colonies, one of the stiffest tax rates is the 'prizes and
awards' tax. I once won $1000 on a lottery ticket. When I cashed it
in, they immediately took $50 right off the top, giving me a check for
$950. Then I had to declare my winnings for income tax purposes, being
taxed at 40%. From $1000 supposed winnings, I ended up with about $550.

Gee, I think you are lying. Wonder why?

Phil DeMayo wrote:

First of all, I'd like to know in which "colony" Jud resides. I've had
to report winnings from the Connecticut lottery a couple of times and
never had to pay more than my regular federal and state income tax
rates.

And yes, you can deduct provable losses from your win....but, the way
it is done is not exactly fair. The losses must be claimed on the
"itemized deductions" form. For a single person like me with very few
allowable deductions it didn't work out.....my "standard deduction"
was higher.

To answer a lot of questions quickly, I live in the People's Republic
of Maine, the state with the highest tax burden in the country. I
bought the lottery ticket at Fenway Park while attending a Red Sox
game and cashed it in about 2 weeks later at the lottery facility in
Worcester, while on my way to NYC. They took the $50 right away for
the State of Massachussetts. Yes you can deduct lottery losses as
well, but as Phil states, it was too cumbersome and time consuming to
be worth my while. $5 got me $550, I am not complaining.

Lying? Explain why you think so, and why the insulting language. You are a
boor.

Tony

"RF" wrote in message
oups.com...
On Nov 8, 7:25 am, Jud wrote:
Tony Clayton wrote:
In the UK a lottery or raffle win is not taxable. If you win a car
(automobile
in US) there is no tax payable.

Here in the colonies, one of the stiffest tax rates is the 'prizes and
awards' tax. I once won $1000 on a lottery ticket. When I cashed it
in, they immediately took $50 right off the top, giving me a check for
$950. Then I had to declare my winnings for income tax purposes, being
taxed at 40%. From $1000 supposed winnings, I ended up with about $550.

Gee, I think you are lying. Wonder why?




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