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<p>[QUOTE=&quot;statequarterguy, post: 940518, member: 21782&quot;]<font size="3"><font face="Times New Roman">Other than possibly more deductions, there is no tax rate advantage to being a dealer.&nbsp; The gains from coin sales are taxed at a maximum 28%, thus, if your income tax rate is lower, you&#039;d be taxed at the lower rate.&nbsp; A disadvantage or advantage, depending on your circumstances, to being a dealer is your profit is subject to SE tax.&nbsp; </font></font></p><p><font size="3"><font face="Times New Roman">&nbsp;</font></font></p><p><font size="3"><font face="Times New Roman">As far as whether or not you&#039;re a dealer, the IRS would look at many factors, not just level of sales.&nbsp; Think about the difference between how an investor/collector would buy/sell and how an operating business would behave and chances are the IRS would look to see if your activities resemble one or the other to determine your status.</font></font></p><p><font size="3"><font face="Times New Roman">&nbsp;</font></font></p><p><font size="3"><font face="Times New Roman">If you are a dealer, other considerations based on your level of activity would be the passive activity and hobby loss rules. </font></font></p><p><font size="3"><font face="Times New Roman"></font></font>[/QUOTE]</p><p><br /></p>

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