Taxes when you sell Junk Silver?

As many of you know, if you sell silver bullion, you owe a 28% capital gains tax on any profit you realize.

Does this apply to "Junk Silver" sales, too?

Thanks.

 

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yes, if you make a capital gain you "have" to declare it...

 

They cant prove what you paid...:devil:

 

But if they do and or your audited then you do

 

Due to the 1099 rules taking effect on 01/01/2012 - cash prices paid by coin shops will begin to slide lower after August through the end of next year. I predict

 

Luke - if you get audited and you can't prove how much you paid for it, then I think the government treats it as if you paid nothing for it. Accordingly, you would have to pay 28% on the total value of the PM, not just the 28% profit realized if you are able to provide proof of purchase price.

This is essentially, a punitive tax. The government doesn't want you in PM's, it wants you in fiat. If you go the PM route they are going to make you pay. Literally. Even with silver's great gains over the past year, this tax would wipe out the majority of profit realized by the recent purchaser unable to prove purchase price.

 

This isnt demanded now is it? Cause that means literally if i was to sell my silver now at current pricing, 28% tax would wipe the damn profits I made and shipping/handling would neutralize would probably gains/profits.

WTF?! gonna get boned in the end for investing and trying to stay ahead of the game?

Or is this not till 1/1/2012 when the other taxing kicks in?

 

Taxes on Junk Silver

Just talk with your tax preparer. Chance of being audited less than 1% less than 150K. You could always file as a self-employed coin dealer and then deduct all expenses. A basic record with cash transactions in a notebook will probably stand up in tax court or with the IRS. I doubt there is anyone in the country who has been nailed for back taxes on hard assets alone, unless the person was a tax protestor or otherwise a target like Al Capone.

Check out www.quatloos.com for unsuccessful tax protesting, but I doubt you are one of those.

ICTA says the rate is 28%, but the IRS said told me that it is 15% this year after finding the expert on this question. So I paid 15%....

 

Don't you just love our new heavy handed Obomination of a government? What won't our government try to take as long as we let them take it? Makes me sick.

 

First of all, before I say anything I'd like to know if any of you, my friends and CTers, think or beleive the government, IRS, FBI, CIA , Treasury Dept, etc. watches what we say on this forum. It would be easy for them to find out our names, search our yearly tax records and sources of income and nail us for what we have said here? I wouldn't put it passed them.
There is another gold forum which beleived such was happening.

 

Us being scared to say something out loud against the U.S. government is exactly what they want. It's about time we started standing up for ourselves and speak our minds.

 

Yes right now if you declare all your income, including what you made on the sale of the silver coins you do owe 28% tax on the profits of the sale of that silver. That is the current law. The sale of most items you have capital gains on is 15%, but for coins or other collectibles the rate is 28%.

The 2012 thing comes from the law requiring dealers to send a 1099 to the government for every person they buy more then $600 worth of material from. Right now they don't have to do that so many people don't report their profits from their sales. After the law goes into effect it will be harder to hide those profits if the IRS decides to audit you. "Dear sir, we have a 1099 form from XYZ Coins that says he paid you $860 for coins in 2012. We do not see this income reflected on your return......"

 

Well, fortunately for me my tax bracket is the lowest one the tax tables books. 15% or 28% wouldn't be much of a burden to me if I sold any coins. The Lincoln cents that I have do not total over $2000.00. It just irks me that a pivate person who enjoys coins, be it ASE's or Morgans, AGE's, etc. as a hobby cannot buy or sell to make a small profit period. Please straighten me out on this.

 

Let's keep in reality check. Skip the political statements.
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I record all of my purchases...where, when and how much I paid. If I ever sell any of my PM's I'm paying my taxes on any capital gains. I don't like the 28% rate, but I knew that was the tax hit before I started buying.

If you don't sell, you have nothing to worry about. If you do sell, pay your tax. They won't give you the Tim Geithner /John Kerry/Tom Daschle/ treatment if they catch you. You can BANK on that. Taxes, like small carbon footprints, are for the little people, friends.

 

Correct, if you don't keep records on your cost basis the government will in most cases assume your cost basis is zero and you'll pay capital gains taxes on the entire amount realized. However, I remember hearing of one case where a seller without purchase records sold a bunch of 90% junk silver and the government allowed the face value of the coins to be used as the cost basis. I guess they thought it would be unreasonable to consider the first $.25 of a junk silver quarter as a capital gain since it could still be spent as $.25 regardless of the price of silver.

 

Technically yes you have to pay taxes. most people don't. of course most people don't sell enough to make it worth their while. Unless you are doing large volumes of coins then they are really not going to notice.

if you have a business then yes they will. a private collector who wants to dump they are not going to really care about. they are after the big people that do hundreds of thousands of dollars in transactions and don't pay taxes.

 

The more I listen to certain politicians and investors rail against the IRS, and suggest that We either implement a flat tax, or abolish the IRS completely......the more sense it starts to make.

 

That's the TRUTH ! You better have receipts for your purchase price or they will consider the value of coins at face.

At least that's how the IRS rep explained to me.

 

If you find a $10 bill, do you owe taxes on it?