Ouch!

Discussion in 'Coin Chat' started by yakpoo, Jan 25, 2020.

  1. yakpoo

    yakpoo Member

    Ok...maybe I'm late to the party, but I just bought a coin on eBay (which I haven't done in a while). OMG! ...sales tax?! I got charged $45 in sales tax!

    What impact is this having on eBay coin sales?
     
    ripple likes this.
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  3. spirityoda

    spirityoda Coin Junky Supporter

    let's see this coin...
     
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  4. -jeffB

    -jeffB Greshams LEO Supporter

    I got hit with that bad surprise on a lot of silver dollars, back when silver was much higher. Fortunately on that lot I came out ahead even after the tax. Since then, NC has made coins and bullion non-taxable, and so far eBay hasn't goofed that up on me. I do worry about it when it's my turn to sell coins, though; I can't make any promises to prospective buyers about what they'll be charged when they hit the button.
     
    ripple likes this.
  5. yakpoo

    yakpoo Member

    Well...she's not pretty, but she's mine.

    1895O-Obv.jpg 1895O-Rev.jpg
     
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  6. -jeffB

    -jeffB Greshams LEO Supporter

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  7. ddddd

    ddddd Member

    It started last year and is quickly spreading to more states. Look up the Wayfair decision and you'll see why.

    https://www.aicpa.org/advocacy/state/south-dakota-v-wayfair.html

    https://www.salestaxdatalink.com/blog/how-post-wayfair-sales-tax-laws-affect-ebay/

    My biggest gripe was the incorrectly charged tax. Several states (surprisingly including tax-everything Illinois) have no tax on coins, but eBay was still adding it in. They finally fixed it for Illinois after three weeks. Utah was less fortunate and it took over 3.5 months to fix.

    I know it changed my habits as I stopped buying completely when the tax was incorrectly charged. As someone who also lists a few items on eBay for sale, I've noticed a sharp decline in sales. I haven't sold anything in over a month there. My first "sale" today was the subject of a mini rant. Not only was it cancelled, but I also had to pay PayPal for that privilege.

    https://www.cointalk.com/threads/an-fyi-and-a-brief-rant.353912/#post-4021774
     
    ripple likes this.
  8. yakpoo

    yakpoo Member

    That sinks. Hopefully it's not something that happens all the time.

    Btw, if we pay sales tax, does that mean there's no capital gains?
     
  9. ddddd

    ddddd Member

    I’m not an expert in that topic, but my best guess is that you would still pay capital gains tax. Your cost basis would just be cost plus sales tax.

    If someone is reselling, it might make sense to make it into a business and apply for a resale certificate (so that there is no tax since one is purchasing to resell and the final buyer will pay the tax).
     
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  10. ripple

    ripple Active Member

    You might be able to itemize the sales tax but the cap gain would be income. It’s been a while since I’ve done any of that so you may want to check.

    Nice coin either way @yakpoo, with the way bay is count yourself lucky if it’s not a scam.
     
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  11. cpm9ball

    cpm9ball CANNOT RE-MEMBER

    About fifteen years ago, I had a bad experience on SleazeBay with a crook...….er……..I mean...….seller.....who tried to charge me 10% sales tax at a time when Florida had no sales tax on collectible coins. The seller did not make this known in his listing, but when I complained, he told me that he charged 10% sales tax for all states. He promptly rescinded the sales tax on my purchase when I told him that I would be contacting his state's attorney general and comptroller. I reported him anyway! ~ Chris
     
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  12. atcarroll

    atcarroll Well-Known Member

    I recently was charged sales tax on a coin and had to call eBay customer service because I live in Michigan, and coins are tax exempt here too. I'm not buying another coin until it's fixed.
     
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