What tax to I pay on selling a coin I didn't pay an exact amount for?

No paper trail, no tax....

 

Log in or Sign up to hide this ad.

It's best to listen to these other guys advice, I'm pretty sure you should pay taxes.

 

This post Is confusing. You make a statement that a sentance is completely wrong and then say it is right?

1) Wrong. "If I remember correctly, you only have to pay taxes on capital gains if you don't reinvest them. I believe youhave 2 years to reinvest before youhave to pay the taxes."

I actually used this rule once, but it may be different now as the laws change each year. I sold a home and boat and bought a business with the profit.

2) wrong. " Capital gains aren't likeprofit as in a business, taxes on profits are due each year but you file those as sole proprietor as a business owner.

1) 'Capital gains aren't like profit as in a business' correct2) " taxes on profits are due each yearbut you file those as a sole proprietoras a business owner" kinda correct,

 

The capital gains rollover requires "similar or like in kind" rolling. Such as you make a $200 capital gain on a coin and you roll that over into an even nicer coin. Rolling from a boat to a business doesn't work, unless it's a fishing business, because then you consider the boat a business in itself.

 

In my considerable experience, MOST small businesses are running afoul of IRS regulations and the tax code. It is not wise to take "this is how I always did it" advice from a small businessman.

 

In my opinion (and I hope this isn't straying too far toward political content), the tax code is large and complex enough that MOST tax-paying entities have no idea whether they're running afoul of IRS regulations and the tax code. No matter how careful you are, you can't be sure that you aren't violating any obscure and apparently-unrelated clause. If we make our honest best effort, we're probably somewhat less likely to be targeted for enforcement, and somewhat more likely to survive an audit, but with no guarantees.

If I were administering a business, I'd seek qualified professional help -- for a variety of reasons, actually, but I'm focusing here on taxes.

For small (under $100) coin-related transactions, I'd be unlikely to lose any sleep over record-keeping and reporting. When I was doing a lot of eBay selling, though, I tracked everything, and carefully reported my income-minus-costs each year. I almost certainly could have "gotten away" with reporting nothing, but I figured if I was actually buying stuff with the intention of reselling it, I'd better stay as legit as I could.

 

Agreed. And when choosing a CPA for a small business, I recommend a small CPA firm. The big boys will kill you with confiscatory pricing not worth it for a small business. Somebody pays for those huge buildings and golf tournament sponsorships. Do you want it to be you? The best advice I can offer any collector is to keep every receipt for every coin you buy, because if you can't prove a cost basis, the IRS will set it a face value for you.

 

[QUOTE="V. Kurt Bellman, post: 2167780, member: 71723"In my considerable experience, MOST small businesses are running afoul of IRS regulations and the tax code. It is not wise to take "this is how I always did it" advice from a small businessman.[/QUOTE]
Anybody that takes advice from a coin forum as gospel is a fool. My SIL is an accountant for the largest corporation is the US and I may be a fool too; but his advice is what I use.

 

Actually 100% correct, if a business not a hobby

 

Apple, huh? Largest corporation in the U.S.

 

This sure has turned into a lot to think about. I want to say thanks again for all of the information. You all have been very helpful.

I almost feel like I should delete this thread before we all have IRS knocking on our doors haha.

 

The only thing you should take away from this thread is that you need to ask a professional in order to get the information you asked for.

 

Yeah that's definitely what I am taking away from this. I have certainly learned a lot though. It has been an interesting discussion to observe.

I will probably be a long time before I even decide to sell any coins anyway. It's hard for me to part them.

 

Let me bring up the issue of Coin Shows. I go to them to buy silver bullion and there are no questions asked and no state sales tax to pay.
Most people deal in cash and I don't see many receipts given out.

 

So if you sell $18,000. to $19,000. worth of coins on ebay in one year and less than 200 payments, no reports to the IRS will be issued ?

 

I have had at least one coin-show dealer tell me, with a perfectly straight face, that he includes sales tax in his prices and conscientiously submits it to the State.

 

Here is the article I read about a month ago that started this topic.

http://www.accountingweb.com/topic/tax/sale-old-coins-generates-tax-capital-gain-income

 

Why not, it was very helpful.