Ok...maybe I'm late to the party, but I just bought a coin on eBay (which I haven't done in a while). OMG! ...sales tax?! I got charged $45 in sales tax! What impact is this having on eBay coin sales?
I got hit with that bad surprise on a lot of silver dollars, back when silver was much higher. Fortunately on that lot I came out ahead even after the tax. Since then, NC has made coins and bullion non-taxable, and so far eBay hasn't goofed that up on me. I do worry about it when it's my turn to sell coins, though; I can't make any promises to prospective buyers about what they'll be charged when they hit the button.
It started last year and is quickly spreading to more states. Look up the Wayfair decision and you'll see why. https://www.aicpa.org/advocacy/state/south-dakota-v-wayfair.html https://www.salestaxdatalink.com/blog/how-post-wayfair-sales-tax-laws-affect-ebay/ My biggest gripe was the incorrectly charged tax. Several states (surprisingly including tax-everything Illinois) have no tax on coins, but eBay was still adding it in. They finally fixed it for Illinois after three weeks. Utah was less fortunate and it took over 3.5 months to fix. I know it changed my habits as I stopped buying completely when the tax was incorrectly charged. As someone who also lists a few items on eBay for sale, I've noticed a sharp decline in sales. I haven't sold anything in over a month there. My first "sale" today was the subject of a mini rant. Not only was it cancelled, but I also had to pay PayPal for that privilege. https://www.cointalk.com/threads/an-fyi-and-a-brief-rant.353912/#post-4021774
That sinks. Hopefully it's not something that happens all the time. Btw, if we pay sales tax, does that mean there's no capital gains?
I’m not an expert in that topic, but my best guess is that you would still pay capital gains tax. Your cost basis would just be cost plus sales tax. If someone is reselling, it might make sense to make it into a business and apply for a resale certificate (so that there is no tax since one is purchasing to resell and the final buyer will pay the tax).
You might be able to itemize the sales tax but the cap gain would be income. It’s been a while since I’ve done any of that so you may want to check. Nice coin either way @yakpoo, with the way bay is count yourself lucky if it’s not a scam.
About fifteen years ago, I had a bad experience on SleazeBay with a crook...….er……..I mean...….seller.....who tried to charge me 10% sales tax at a time when Florida had no sales tax on collectible coins. The seller did not make this known in his listing, but when I complained, he told me that he charged 10% sales tax for all states. He promptly rescinded the sales tax on my purchase when I told him that I would be contacting his state's attorney general and comptroller. I reported him anyway! ~ Chris
I recently was charged sales tax on a coin and had to call eBay customer service because I live in Michigan, and coins are tax exempt here too. I'm not buying another coin until it's fixed.
