Message:

<p>[QUOTE=&quot;GDJMSP, post: 1124488, member: 112&quot;]Regardless of how it works out for Guy, there is something that is extremely important for all collectors to recognize and take note of in this thread. That is that every coin you ever acquire, you need to keep specific records for that coin. What those records need to entail is the following - </p><p><br /></p><p>1 - date you acquired it</p><p>2 - who you acquired it from</p><p>3 - cost basis (what you paid for it) of the coin. If it was a gift that basis is 0. If it was found in change or roll searching that basis is face value. *</p><p>4 - if sold, the amount you sold it for and to whom. And keep records of losses as well as gains for losses offset gains.</p><p>5 - keep records &amp; receipts for everything that has anything to do with your collection. If you buy a safe for home, keep the receipt. If you buy 2x2s, flips, albums, coin books, cleaning supplies, slab boxes, grading fee receipts, insurance, hotel &amp; travel receipts when going to coin shows - anything and everything that has anything to do with your collection in any way, you need to keep records on it.</p><p><br /></p><p>* with some trades and some sales, whether with a dealer or a private individual, things become more complicated. Like exchange rules come into play sometimes and sometimes they don&#039;t, it depends on the situation. Talk to your accountant to get answers on that. But if you don&#039;t keep the records then you are lost before you ever start.</p><p><br /></p><p>But the primary issue is this - if at some point the IRS ever questions one of your returns all of these things will come into play. And if you do not have these records mentioned above then your basis for the coins you sell or trade is assumed to be 0 by the IRS and you will owe taxes on the entire amount of any proceeds.</p><p><br /></p><p>Don&#039;t let yourself get into this situation. KEEP records for every single coin ! For if you don&#039;t you could end up in a mess the likes of which you have never seen.</p><p><br /></p><p>In short, when it comes to tax consequences, coin collecting is far more complicated than buying and selling stocks or any other investment vehicle in the eyes of the IRS. But if you keep the records, and even if you lose money on your collection, which is what happens to most collectors anyway, you need those records. For with them you can deduct losses and pay less taxes than you normally would. You can even have carry-over losses for following years.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in