I'll be selling part of my collection later this year. Quick question for those that know: For tax purposes, can I include shipping and, or sales tax to come up with my cost basis?
Shipping? Yes. Sales tax? If you paid it on your purchases, yes. If you are collecting it on your sales, no.
What you spent out of pocket becomes your cost basis... cost of coin + shipping + tax. Then when you go to sell the coin, you can also add the selling expenses to your cost basis... shipping + selling fees/commissions.
Does the US tax system treat the sale of chattels as 'income'? This seems grossly unfair, not to mention pretty well unenforceable.
If you make a dollar doing pretty much anything, it is reportable as income, unless the tax code provides for a specific exemption. Of course, lots of stuff goes unreported, but if you sell any of your coins and only make a dollar, it's is certainly income you are required to report and pay income tax on.
Income from the sale of chattels is not taxable in the UK. Move here to sell your stuff. Capital gains tax is only chargeable on stocks and shares and real estate. Buy a vintage Ferrari, drive if for a while, sell it for a $100,000 profit and the profit is all yours. Buy it with the intention of resale as a business and then the profit is taxable at 20%. Presumably if you make a loss selling your chattels such as coins you can write that off against income and thus pay less overall tax.
You must be selling a lot. I don't sell often, I'm more of a coin hoarder but none of it is reported anywhere. Not profit or loss so I figure it's even. The IRS would disagree but I don't care. My name, address and SSN are
A fifth of Jim Beam is about $31 at my local Co-Op (like a convenience/grocery store). I get most of my drink on base. That same fifth is about $18 on base. They even have this new Jim Beam Blended...100 proof! $22 on base.
THe local supermarket was doing a Father's day special on litres of Bourbon for $25, normally about $30
