Because of the new 1099 law I have begun developing several spreadsheets to track my costs of bullion holdings. I am of the opinion that all costs can be added to my basis. These costs include safe deposit box rental fees, coin holders, gasoline to transport coins, as well as shipping charges to aquire and sell.
Well, I guess it depends. Do you treat profit and loss as a business, or do you record it as miscellaneous income (loss)?
I think you may want to get a professional opinion on this. I took a look at the IRS website and it seems to exclude expenses from the cost basis of passive investment assets for individuals except for the costs for buying and selling stocks, bonds etc.
You work for the IRS? I'm not trying to advocate doing anything illegal I just think enough taxpayer money is wasted as it is. I don't want to give them any more to waste.
You need to ask your tax guy but as a normal, your cost basis is the price plus shipping and fees. When you sell the shipping cost can be used as long as the buyer is not paying it. Past that, the cost of storage and gas are questionable. Get correct information for you and your State from your tax guy.
