tax question for coin collections

"Tax crap" is a federal thing, too, don't forget...

 

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That wouldn't surprise me. Federal law already has these reporting requirements in place as regards certain income and payees, and they're mandatory.

 

Technically, any income is taxable unless it's specifically sheltered in a manner that is defined by the IRS. Proper recordkeeping would help mitigate this, of course... and would cost you a proportion of the time you have available for the actual hobby.

The date of the SFGate article was February 27, 2007 and it seemed that eBay was trying to fight its designation of a "broker" which would mandate their reporting of income. Since eBay likes to keep itself away from the messiness of individual transactions (excepting, of course, the collection of its ever-rising fees!) I can't see them giving in this fast with respect to the note that was sent to a seller (Eddiespin's sister). I'd really like to see that notice if you have it, Eddie.

They didn't really give in on the collection of sales tax either, so I don't seem them yielding on the income reporting requirements. They do have a point in that coin show organizers don't go around checking on dealers' sales and report that. (But show venues in some states are responsible for verifying sales tax certificates.)

Well, I know what I'd do if I owned eBay stock (which I don't) and this actually happened!

 

I've read it here:

http://www.irs.gov/businesses/small/industries/article/0,,id=163622,00.html

http://www.ebaymainstreet.com/federal/

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/02/24/MNGMPOAK5C1.DTL

http://www.usatoday.com/money/perfi/taxes/2007-03-05-tax-gap-usat_N.htm

 

Sorry, I cant find any possible connection between honesty and IRS.

 

If this will happen people will find a way to deduct their rents, car payments , insurances and electri bills from those $5000 sales/profits. Or move to a different auction, which will fluorish as Ebay will kiss the dirt.

 

Not theirs. Yours.

I'm a minister, which means I pay the taxes of a business owner. Most of that income comes from honorariums. It's often just a $50 or $100 note tucked in a thank you card. My accountant asked me if I was SURE I wanted to declare that money. I did. And anyway, the last thing I need is when I'm being audited and the IRS is taking a comb to my records and asking, "Sir, we know it's common for pastors to get honorariums, yet for the past 3, or 5, or 7 years, you've gotten none. Care to explain that?"

 

Yes i know that but NJ has a sales tax on coin sales. Some states do not.

Not only Fed Income tax but some states have state income tax on anything you make money on

Sales Tax
Fed Tax
State Income tax
:headbang: :desk:

 

Honesty, actually, is just a good business sense. My grandfather, a successful businessman, taught me the value of honesty and fair play in business transactions, a long time ago. He said, if you want to be a success in business, you can't be dishonest and greedy. Treat your customers honestly and fairly, and be content with only a reasonable markup above costs...say, for example, 10%. As I found out, he was right. And all I've been doing is taking a product that cost me $10, say, adding 10%, and selling it for $20.

 

Honesty Is The Best Policy !

 

Okay, sorry. Didn't mean to get this thread sidelined. Thanks for the help though. I'll have to do more research and studying about it, but I don't think I make enough to have to pay income taxes yet. I'm lucky to make 20 to 50 dollars a year. Kind of made me worried when I first read it, cuz I have bought coins before and sold them for a few dollars more than what I payed. Got worried that I would get in trouble with the IRS. Thanks for the help. Gotta do more research.

Phoenix

 

Howdy,

Honest is always the best policy. When dealing with the IRS or dealing with another coin collector. This is not negotiable.

In my dealings with the IRS, I am always honest, and yet I feel very strongly that it is my patriotic duty to LEGALLY minimize my taxes. And I also don't fret and stew about every single receipt so long as the numbers are realistic and based upon my honest recollection (e.g. charitable raffles and drawings).

Case in point with the boys college expenses. Wifey had some company stock which had appreciated. Rather than sell it and eat the capital gains tax, we GAVE it to the boy and HE sold it. Sure, he had the same capital gains, but his income was otherwise about zero so he didn't have to pay any taxes, net/net.

Honest and legal.

peace,

rono

 

You may want to check your math... or was that a joke and just too subtle for me?!

 

Note the icon at the end of his post.

 

Thanks Roy. AgCollector, my grandfather just never taught me how to do math, that's all...

 

From what I understand,a coin dealer in California would charge the state sales tax in addition to the federal sales tax to a customer in California.If the customer is living in any of the other 49 states,they'd be exempt from the California state sales tax.

In Canada,the system is slightly different.They have got both a federal Goods & Services Tax (like in New Zealand & Australia),but some provinces also have a Harmonised Sales Tax as well.

Here in New Zealand,all banknote & coin prices always include the 12-1/2% G.S.T.,except for on pure bullion bars or medal-coins,which is exempt from G.S.T..

Aidan.

 

Aiden:
There is no Federal sales tax.
However you are right on the others (California).

 

Congratulations Aidan - you've actually made a statement about US law which is only about 90% wrong. Your "understanding" is seriously flawed.

There is no federal sales tax in the United States. There is nothing comparable to your GST in the United States. The federal government does not collect any taxes upon the general sale of goods in the United States.

California, and almost all other states do have sales taxes, which vary greatly both in their percentage of sale price, and what goods they apply to.

In California, and virtually all, if not all, of the other sales tax states the tax applies if the sale is made, and the purchaser takes possession of the goods, in the state. YOU would pay California sales tax if you visited us, and made a purchase in one of our stores.

Sellers need not collect sales tax when they ship goods out of state. I would pay no California sales tax if I ordered something from a local company and had it shipped to my daughter in Maryland or my son in Virginia.

(Use taxes imposed by a person's state of residence are a whole different issue.)

A California sale of coins might, or might not, be taxable. Bullion is not taxable, non-bullion is. The catch is that for sales tax purposes the California Revenue & Taxation Code defines "bullion" as coins or precious metals sold at an aggregate price of $1,000 or more in a single transaction. In other words, buy a single Krugerrand at a coin shop and pay sales tax; buy an 1834 Quarter Eagle, and pay no tax.

 

Frank,I had thought that there was a federal sales tax in America.In Australia,the G.S.T. is a federal tax of 10% on top of the original price,but the Aussie states may impose their own sales taxes as well.

In Singapore,they charge 3 types of sales taxes,but I am not sure how their system works.

In the U.K.,21% Value Added Tax (known as V.A.T.) is added.

Aidan.

 

Aiden:
There is no equivalent to the VAT in the US.
(Shush, they may hear you and implement it.)