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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. .. |
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#2
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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. . |
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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. |
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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
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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. |
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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
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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
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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
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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
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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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