I have been to several CPAs and regular tax preparer. None of them have recommended I inventory my investment coins. Supposedly our good friends at the IRS want people to do this. I think it would be good for both me and the government to know what I have in assets. Frankly I don't think the IRS is envious in the least of my relatively small hoard. Rarely do they use tax filing as a basis for an investigation unless people are tax protestors--like this "investor": http://greenevillesun.com/story/308497 My question is, do most investors here do a rigorous inventory of their coins? Do their accountants recommend this? Thanks in advance for any help on this. I tried to get an answer to a tax question from the IRS recently and after visiting their office and then calling several numbers I still did not get the right answer according to ICTA. So I guess there are a lot of different methods out there.
Most people here probably inventory their coins for personal and/or insurance reasons. There is no IRS reporting requirement unless you sell, and in that event it is a good idea to have the original paperwork handy to establish your cost basis. Why do you think you need to inventory your coins for the IRS? Did you read this someplace, or did someone tell you this?
I think it is a good idea to have an inventory of your coins. If you have ever paid for a coin by any means other than cash, there is always going to be some paper trail or electronic record of the transaction. TC
I would hate to try and inventory my collection. I'd sell it before I'd go through that. The sets wouldn't be a problem, the albums won't be all that difficult but the rolls would take me the rest of my life. I'm going to go with an estimate. :thumb:
Coin inventory One CPA said it was required, like stocks and bonds and other inventorying. I'll have to give ICTA a call. They are sticklers for the law. One can see what the intent of the law would be. The government gets a handle on what trends are developing in demographics and statistically, and the brainiacs in government can devise policies for what they see as the sociological consequences of these trends. Probably Keynesian, politically, but there is a reason why government requires other inventories of a business nature.
I think that you should NOT tell the gov anything. They can allways use it against you, then come and take it away.
The CPA was wrong. There is no government requirement to inventory stocks and bonds either. Find a new CPA. What is ICAT? What country are you in? It doesn't sound like the USA. Edit: The thought just occurred to me that this particular CPA might be running some sort of scam on you. Be very careful dealing with this guy. The questions are a red flag.
Coin inventories ICTA--http://www.ictaonline.org/ Thanks for the warning on the issue with the CPA. Like I said, I spoke with several accountants on coins, they all had a different method based on their practice. Records give power to whomever reviews them--not all attorneys or accountants are following the law.
Owle I agree that there is something very wrong here! The government only wants to collect their taxes when you sell something, they have no interest in an inventory of your possessions or investments.
Inventories and Coins ICTA did not tell me inventories are required in tax filing--but I haven't asked them--they did say I needed to file an 8300 form if I handled cash over $10K. The CPA in question (not the preparer I hired this year) did tell me that inventories are mandatory; he also asked for power of attorney as I was filing some unfiled tax years, talked about inflating deductions for custormers and getting kickbacks from them, and gave me three different versions of possible tax filings; and showed me a generally unethical practice. I think it is good to do personal inventories so you know whether you have $200K or $300K in total value at a given time. Having a financial advisor is a good thing, but they tend to be backers of stocks, bonds, Roth IRAs and other "conservative" practices. The good thing about owning physical assets is a lot more flexibility in investments.
This guy is pulling your leg, and maybe more. There is no requirement by the IRS to inventory stocks, bonds, real estate, expensive jewelry, classic cars, coins, or anything else.
I think there is a bit of a misunderstanding here. As a buyer, you never need to file an 8300 form, this form is filed by the seller or dealer. They will file it on any cash transaction over $10,000. This has nothing to do with what you're buying, nothing to do with coins per se, and would be filed if you for instance paid for a car in cash. It has to do with money laundering, and applies only to cash purchases. Checks, wire transfers, and money market withdrawals are not cash. Furthermore, as a buyer, you will know it is being filed because they will be asking for information like your Social Security number. If you scroll halfway down the page of the following, all the information about reporting is discussed here. http://www.cmi-gold-silver.com/gold-confiscation-1933.html
You are still even considering doing business with this party?? I would have collected everything I took into that office, told this guy to never contact you again, and then quickly left.
I don't think any of us here really understand your position, or why you need form 8300, or why you need to give someone power of attorney, or why you are the very rare position of having to inventory your coin holdings, or why you need a financial advisor. If you have substantial assets, are involved in trust accounts, own businesses that deal in large amounts of cash, or are liquidating an estate, or are involved in an inheritance just make sure you are dealing with a fairly large and reputable CPA and attorney. Don't just pick someone out of the phone book or hook-up with a fly-by-night financial planner who will charge enormous fees for very ordinary investments. Nothing you are saying makes sense to me, but nobody here has enough information about your circumstances to properly advise you. Good luck.
