Thread: tax consequences of coin collecting?

hi All,
Can someone point me to good information online that deals with tax consequences of coin collecting? I'm interested in things like: (1) if I sell a coin, will the IRS hit me up for taxes on the sale price? (which I guess means I should have kept track of what I was paying for everything!). (2) When I kick-off, are my kids going to be hosed by the IRS?
thanks
andy

Theres not really too much online on that specifically, unless you go to the IRS site and can understand tax code. But, do a search on this site....we've discussed this countless times. There are ways around inheritance tax for your kids. But unless you fail to report profit made on sales, you're just stuck with taxes there. Best of luck.
Guy~

I'd say see an accountant if you have that many coins to worry about.

But:
1. Not for the sale price but for the capital gains you had on it. (profit)
2. not sure what you mean by hosed but there is estate tax's that would be due if left to heirs.

Many coin collecting software programs will keep track of this for you - particularly the Carslile Dev. Corp. However, that program has other issues but that is a topic for another thread and another day.....

What kind of amounts are we talking about here??

Originally Posted by RiverGuy

Many coin collecting software programs will keep track of this for you - particularly the Carslile Dev. Corp. However, that program has other issues but that is a topic for another thread and another day.....

Do you have any links to any free programs that will allow me to track my coin purchases better? Right now I am just writing down the buy price, condition, and seller on pieces of paper. There has got to be a better system than this.

To start with just how would the IRS know that when you die you leave a fantastic amount of coins to someone? If you left it to me, for instance, I would say nothing.
Also, just who in the IRS is watching what you buy and sell in coins? There are lots of dealers selling coins every day and pay no taxes at all on that.
Flea markets are full of possibly millions of people that sell almost anything on Earth and pay no taxes of any kind either.
My Son and his wife know about my coins, thier names are on my Safe Deposit boxes as co-owners so if something happens to me, they just go empty it all. No taxes there either.
If your really worried about the IRS, I could solve all your problems. Just send everything to me now.
You must realize that a coin does not have a seriel number, a model and make number, a factory seal or anything that makes is identifiable. yes if it is one of only 10 made maybe, other than that, no one knows what you have. OR DO THEY? Please check your home for devices planted there by the IRS.
If you do find any, please shout loudly that you don't know me.

I don't understand how I would Pay Taxes on Currency.. Say I find a Modern Star 2.00 Bill and turn around and sell it for 50.00... AARGGEE!!
I will have to check the link above..

Originally Posted by Just Carl

You must realize that a coin does not have a seriel number, a model and make number, a factory seal or anything that makes is identifiable. yes if it is one of only 10 made maybe, other than that, no one knows what you have.

Carl: You raise a very interesting point within your post. I am wondering if slabbed coins with serial numbers will be treated any differently from raw coins. Obviously, if someone has a registry set then it is well known that they have it. You make a nice case for sticking with raw coins. Many people have been pulling coins from circulation over their lifetime or buying coins directly from the US Mint and paying sales tax, so I cannot imagine how the IRS would handle that when they decide to sell or pass along to a relative? TC

That can be a pretty strong motive to mak a phone call

"....hello, IRS....There's this place called Coin Talk and....."
Guy~

Maybe you will get lucky and lose money, then you don't have to worry about the IRS!!

Lack