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Federal Taxes Paid On Coin And Stamp Sales



 
 
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  #1  
Old February 14th 08, 12:10 AM posted to rec.collecting.coins
Arizona Coin Collector
external usenet poster
 
Posts: 1,199
Default Federal Taxes Paid On Coin And Stamp Sales

Hello

Last night I completed my 2007 Federal and State Income
Tax. I used TurboTax software and E-FILED both my
State and Federal Income tax.

Investment Sales are taxable. Stock, Bond, Mutual Funs
Antiques, Coins, Stamps, Art ect.

THE IRS REMARKS ON COIN COLLECTING
http://www.irs.gov/newsroom/article/...172833,00.html

If you go to the IRS Web page, and use the search
word "Coin" your get some interesting results back.

That realy sucks........

I can see the IRS requiring EBAY to send some form
(lets call it a 1099-cc, "coin collecting"), to anyone
who sells a coin to anyone.

Death and Taxes will always be around.

..


Ads
  #2  
Old February 14th 08, 09:12 PM posted to rec.collecting.coins
Bruce Farley
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Posts: 220
Default Federal Taxes Paid On Coin And Stamp Sales

When I was doing my California taxes there was a spot to put CRV
(California Recycle Value) money. This is the money you get when you
turn in aluminum cans. These are the same cans that I had PAID the CRV
fee of $0.15/6 pack (and was charged 0.0825% sales tax on the CRV fee!).
I did not put down anything as I do not see getting my money back as
income. I guess that maybe this is put in for people who make their
living picking up cans but I really do not see how it could be called
income in the case of someone just getting their money back.
I am not a CPA, just a (frustrated) taxpayer.
Bruce

Arizona Coin Collector wrote:
Hello

Last night I completed my 2007 Federal and State Income
Tax. I used TurboTax software and E-FILED both my
State and Federal Income tax.

Investment Sales are taxable. Stock, Bond, Mutual Funs
Antiques, Coins, Stamps, Art ect.

THE IRS REMARKS ON COIN COLLECTING
http://www.irs.gov/newsroom/article/...172833,00.html

If you go to the IRS Web page, and use the search
word "Coin" your get some interesting results back.

That realy sucks........

I can see the IRS requiring EBAY to send some form
(lets call it a 1099-cc, "coin collecting"), to anyone
who sells a coin to anyone.

Death and Taxes will always be around.

.



  #3  
Old February 15th 08, 12:14 AM posted to rec.collecting.coins
stonej
external usenet poster
 
Posts: 3,507
Default Federal Taxes Paid On Coin And Stamp Sales

Ebay is fighting any attempt by the IRS to get their hands on their
sales records (unless forced to turn them over
by a court in specific cases). Ebay knows that there is a lot of
tax evasion going on among their sellers and that a lot of people will
just quit selling on Ebay if they have to pay taxes on what they sell.
  #4  
Old February 15th 08, 01:14 AM posted to rec.collecting.coins
Bruce Farley
external usenet poster
 
Posts: 220
Default Federal Taxes Paid On Coin And Stamp Sales

And if I do pay taxes, just how do I set a cost basis on coins that I
have had for a long time and have NO idea what I paid for them? Looks
like a full employment act for CPA's!
Bruce

stonej wrote:

Ebay is fighting any attempt by the IRS to get their hands on their
sales records (unless forced to turn them over
by a court in specific cases). Ebay knows that there is a lot of
tax evasion going on among their sellers and that a lot of people will
just quit selling on Ebay if they have to pay taxes on what they sell.


  #5  
Old February 15th 08, 05:00 AM posted to rec.collecting.coins
Art Shiller
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Posts: 2
Default Federal Taxes Paid On Coin And Stamp Sales

stonej, you got that right! By the way, listings are down 6% from three
weeks ago and the feedback boycott hasn't even begun yet.


"stonej" wrote in message
...
Ebay is fighting any attempt by the IRS to get their hands on their
sales records (unless forced to turn them over
by a court in specific cases). Ebay knows that there is a lot of
tax evasion going on among their sellers and that a lot of people will
just quit selling on Ebay if they have to pay taxes on what they sell.



  #6  
Old February 15th 08, 05:27 AM posted to rec.collecting.coins
Jerry Dennis
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Posts: 1,207
Default Federal Taxes Paid On Coin And Stamp Sales

On Feb 14, 7:14�pm, Bruce Farley wrote:
And if I do pay taxes, just how do I set a cost basis on coins that I
have had for a long time and have NO idea what I paid for them? Looks
like a full employment act for CPA's!
Bruce


I can tell you what the Feds will do to set the basis of any coin you
can't prove otherwise: face value. Your 1916-D Merc's basis will be
10� unless you can prove otherwise. Your 1909-S VDB's basis will be
1�. Your MCMVII UHR Saint's basis is $20.

About the only coin whose basis is established by Federal records is
the 1933 Farouk Saint, set at $7.590,020.00 (that is if Stack's/
Southeby's premium is included).

Jerry
Still here, but lurking.
  #7  
Old February 15th 08, 09:14 PM posted to rec.collecting.coins
Jon Purkey
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Posts: 907
Default Federal Taxes Paid On Coin And Stamp Sales

On Thu, 14 Feb 2008 20:27:18 -0800 (PST), Jerry Dennis
wrote:

On Feb 14, 7:14?pm, Bruce Farley wrote:
And if I do pay taxes, just how do I set a cost basis on coins that I
have had for a long time and have NO idea what I paid for them? Looks
like a full employment act for CPA's!
Bruce


I can tell you what the Feds will do to set the basis of any coin you
can't prove otherwise: face value. Your 1916-D Merc's basis will be
10? unless you can prove otherwise. Your 1909-S VDB's basis will be
1?. Your MCMVII UHR Saint's basis is $20.


Yes. And even if they are proof and uncirculated coins sold by the
Mint the cost would be almost face, at least until recently when the
the Mint became more greedy.

proof sets: http://www.coinland.com/mintage_figures_proofsets.asp (all
I need is $1.89 and a time machine.)
mint sets: http://www.coinland.com/mintage_figures_mintsets.asp
  #8  
Old February 17th 08, 12:49 AM posted to rec.collecting.coins
Robert Dibbell
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Posts: 106
Default Federal Taxes Paid On Coin And Stamp Sales

Income tax is required to be paid on ANY form of income. That's how the
Fed's got Al Capone. He wasn't arrested for his criminal activities. He
was arrested for Income Tax Evasion.

Anytime you sell something you own for more than you paid for it, you have
income to pay taxes on. Direct Selling companies provide 1099's to
independent sellers of their products. While they don't list the amount of
money involved, there is a box on for Form 1099 that is checked. The
checked box indicates that the named person purchased at least $5,000 worth
of products for resale. About the best that the IRS could force eBay to do
would be to provide a similar statement that the named person sold at least
$5,000 worth of products on eBay.

It would then be up to the taxpayer to report his net profit on the required
tax form (Schedule C of Form 1040 if a sole-proprietorship. Form 1065 if a
partnership, Form 1120-S if an S-Corporation, etc). It would then be up to
the IRS to dispute the amount reported via a tax audit.

For the casual seller of coins on eBay, it's his or her decision to report
any income. Just like the voluntary reporting of items purchased out of
state where no sales tax was paid and the state tax form has a line for the
taxpayer to report and pay the required sales tax to his home state. Or as
another has pointed out, the cash back on cans and bottles.

Even gambling winnings have to be reported as income. Casino's have a level
at which they have to immediately report some winnings and withhold a
percentage of the amount won and forward it to the IRS. The Casino then
gives the player a 1099 which reports the amount of the winnings and the tax
withheld. Gambling losses can be deducted from gambling winnings up to the
amount won. You just need records to show how much you lost.

I own a tax preparation and bookkeeping business. I even worked for the IRS
during one tax season. It was interesting to say the least.

Bob

"Arizona Coin Collector" wrote in message
...
Hello

Last night I completed my 2007 Federal and State Income
Tax. I used TurboTax software and E-FILED both my
State and Federal Income tax.

Investment Sales are taxable. Stock, Bond, Mutual Funs
Antiques, Coins, Stamps, Art ect.

THE IRS REMARKS ON COIN COLLECTING
http://www.irs.gov/newsroom/article/...172833,00.html

If you go to the IRS Web page, and use the search
word "Coin" your get some interesting results back.

That realy sucks........

I can see the IRS requiring EBAY to send some form
(lets call it a 1099-cc, "coin collecting"), to anyone
who sells a coin to anyone.

Death and Taxes will always be around.

.



  #9  
Old February 18th 08, 07:06 AM posted to rec.collecting.coins
clarkent
external usenet poster
 
Posts: 52
Default Federal Taxes Paid On Coin And Stamp Sales

You can also treat each sale as a Capital Gain or Loss. You must establish a
cost basis , which includes any fees to acquire or dispose of the asset.
This has advantages to filling a schedule C , business form. You then have
to pay 15% self employment tax on any profit over $400. No self employment
tax on capital gains, but it is a hassel to keep records of each individual
coin bought and sold, if you do enough volume.
"Robert Dibbell" wrote in message
...
Income tax is required to be paid on ANY form of income. That's how the
Fed's got Al Capone. He wasn't arrested for his criminal activities. He
was arrested for Income Tax Evasion.

Anytime you sell something you own for more than you paid for it, you have
income to pay taxes on. Direct Selling companies provide 1099's to
independent sellers of their products. While they don't list the amount

of
money involved, there is a box on for Form 1099 that is checked. The
checked box indicates that the named person purchased at least $5,000

worth
of products for resale. About the best that the IRS could force eBay to

do
would be to provide a similar statement that the named person sold at

least
$5,000 worth of products on eBay.

It would then be up to the taxpayer to report his net profit on the

required
tax form (Schedule C of Form 1040 if a sole-proprietorship. Form 1065 if a
partnership, Form 1120-S if an S-Corporation, etc). It would then be up

to
the IRS to dispute the amount reported via a tax audit.

For the casual seller of coins on eBay, it's his or her decision to report
any income. Just like the voluntary reporting of items purchased out of
state where no sales tax was paid and the state tax form has a line for

the
taxpayer to report and pay the required sales tax to his home state. Or

as
another has pointed out, the cash back on cans and bottles.

Even gambling winnings have to be reported as income. Casino's have a

level
at which they have to immediately report some winnings and withhold a
percentage of the amount won and forward it to the IRS. The Casino then
gives the player a 1099 which reports the amount of the winnings and the

tax
withheld. Gambling losses can be deducted from gambling winnings up to

the
amount won. You just need records to show how much you lost.

I own a tax preparation and bookkeeping business. I even worked for the

IRS
during one tax season. It was interesting to say the least.

Bob

"Arizona Coin Collector" wrote in message
...
Hello

Last night I completed my 2007 Federal and State Income
Tax. I used TurboTax software and E-FILED both my
State and Federal Income tax.

Investment Sales are taxable. Stock, Bond, Mutual Funs
Antiques, Coins, Stamps, Art ect.

THE IRS REMARKS ON COIN COLLECTING
http://www.irs.gov/newsroom/article/...172833,00.html

If you go to the IRS Web page, and use the search
word "Coin" your get some interesting results back.

That realy sucks........

I can see the IRS requiring EBAY to send some form
(lets call it a 1099-cc, "coin collecting"), to anyone
who sells a coin to anyone.

Death and Taxes will always be around.

.






--
Posted via a free Usenet account from http://www.teranews.com

  #10  
Old February 19th 08, 05:50 AM posted to rec.collecting.coins
Robert Dibbell
external usenet poster
 
Posts: 106
Default Federal Taxes Paid On Coin And Stamp Sales

You make a good point. Unless you are in the business of buying and selling
coins, you can treat each purchase and sale the same as you do stocks and
bonds. Record keeping in both cases is about the same except that the date
acquired is important if you go the Capital Gains route in order to prove
short or long term gains/losses.

The advantage to buying and selling coins as a business is additional
deductions from legitimate business expenses. Losses are not limited to
$3,000 as in capital losses (anything over $3,000 has to carry over to
future years). But, as you pointed out, there are no self-employment taxes
on capital gains income. And capital gains are taxed at a lower rate than
ordinary income.

Tax law can be very complicated and we're being very simple here. Thanks
for pointing out an alternative. I will keep that in mind if I end up with
any tax clients who buy and sell coins.

Bob



"clarkent" wrote in message
.. .
You can also treat each sale as a Capital Gain or Loss. You must establish
a
cost basis , which includes any fees to acquire or dispose of the asset.
This has advantages to filling a schedule C , business form. You then have
to pay 15% self employment tax on any profit over $400. No self employment
tax on capital gains, but it is a hassel to keep records of each
individual
coin bought and sold, if you do enough volume.



 




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