Let's talk about form 1099K & form 8300.

starting next year. form 1099K is the newest form for IRS to know your coin transactions. $20,000.00 and up is subject to file this form. while form 8300 is here for a long long time. but collectors are still unfamiliar to that. anyone with knowledge of these two forms. please share with us. the collectors are eager to know. thanks.

p.s. IRS is headed by krispy.

 

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check this out.

http://www.auctionbytes.com/cab/abu/y210/m03/abu0258/s03

http://www.irs.gov/pub/irs-pdf/f8300.pdf

 

Really? Have you taken a poll?

Sounds like you are familiar, what can YOU share?

"the collectors" = elaine

Excuse me?


In general, it is advisable for you to seek and follow the advice of a tax professional to that of an open forum of strangers.

 

Both forms are news to me.

 

Tax Forms and CPAs

"Ask your tax professional, CPA, or tax attorney". :secret:

Every CPA I have dealt with says not to worry about paying taxes on hard assets, and other things the government doesn't know about "they don't care about you" I've been told. My feelings were hurt that the IRS considers me a non-entity... I am under six figures, am an investor/collector rather than a dealer.

Check out Quatloos.com and then your state's US attorney press releases on how tough the government can get. I wonder if it would do any good to live in a state where the feds aren't so activist.

 

Oops --- are you supposed to claim everything you sell?

 

That is a scary comment to be made by a CPA.

You don't claim 'everything'. You claim the gross sales, less purchase cost, less costs associated with the business.

 

Taxes

Three self-employed individuals--a plumber, a chiropractor, and a prosperity preacher, were having lunch where they discussed how they figured what to pay in taxes. First the plumber spoke up. "I gather up my weekly profits, and make a small circle on the table and then fling all the money in the air and what falls outside the circle, I keep". The chiropractor then said: "I make a big square on the table, throw my monthy profits on the table and what is outside the square, I keep". Then the preacher spoke up: "You guys are suckers. I throw my profits from the crusade in the air, and what God almighty doesn't catch, I keep."

If you think the US has a tax compliance problem, Greece's problem is so bad that the tax collectors went on strike to protest how hard their jobs have become.

 

Sell??????........ I thought I was just trading

 

My friend I like the way you think!

 

Good stuff, Elaine,

Most of us are aware of 8300 because this got ramped up due to 9/11 and anti-terrorist legislation.

The new 1099K is news to me but not unexpected. Cripes, there are a lot of folks making a lot of money on ebay and while the ones with established businesses have probably been paying, many haven't.

The IRS is pretty transparent in their basics - if you make a profit selling any kind of asset, it's considered a taxable event. Period.

Now there is an exception for Garage Sale stuff and many of us are able to use this exception quite often with our coin transactions. However, I'm sure many of us abuse it and should probably be more careful.

peace,

rono

 

I think the key word here is profit. i.e. "I bought a Flying Eagle for $20 in 2005 and sold it for $22 in 2007". Better claim that 2 bucks..... Uncle Sam is watching......

 

8300 and Other Forms

I have done FOIA's that tell me what the IRS has in terms of records on me. To the best of my knowledge Individual Master Files must be provided to the taxpayer indicating what they have on you. They don't have the programs to separate out net profits. If they want to know your gross income, they could probably get it from bank records--but it would take some doing. At this point, the IRS and other agencies are looking for suspicious actions, substantial enough to warrent scrutiny and government action. They are using data mining and profiling programs--how do you fit into the typical demographic for your occupation? Coin dealers are an anomoly. Because of the complication of going through all the records to find basis, verify deductions and so forth they don't make a very profitable target.

They should IMHO make a special exception in the case of "cash for gold" and other scammers and sic the C.I.D. wolves on them!

 

if your selling online and take payment online for those transactions and it exceeds $20,000 or 200 sales per taxable year, you have to report it to the IRS. And im sure if you dont ebay and paypal (well theyre both the same) will comply with the feds. Same with amazon and other major companies.
No one wants an IRS audit.
Best suggestion is report your profits. it doesnt hurt to pay 9%. plus the cost of the coin is taken into account by the feds so your only paying taxes on your profits.

 

Never heard of those forms, but then I've never done my own taxes. What my accountant does is his business and he'll be the one audited, not me. Of course, I've never made a dime off of coins, so maybe there's nothing for me to worry about.
Guy~

 

8300 and Other Forms

I try to do it by the book. I gave all my bank records to the accountant, and told him I want 100% honest returns.

I don't take any chances with unsupportable deductions. This case in CT indicates that the IRS can play hardball with sleazy accountants:

http://www.justice.gov/usao/ct/Press2010/20100309-3.html

 

So what happened??? With the accountant?

 

Accountant

The guy I provided the thread on is doing hard time in federal prison. They audited many of his customers. Interest and penalties add up when you're talking old tax years. There were some obvious red flags, like trying to deduct gambling losses.

 

Only 10 months of prison time though. I bet he's back to doing tax returns for people even before he's out.

 

guys. two more days left. be sure to file your income taxes. dateline is april 15,2010.