tax question for coin collections

Frank,Roy has already explained to me how the U.S. tax system works.There were certain things I got wrong,I admit,but I am not perfect,nor is anyone perfect except God Himself.

Aidan.

 

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If you only make $20-$50 a year, you don't have to worry about it. I know here in WI it's only taxable if annual income is over $700. I'm not sure what it is in PA, but it's probably somewhere in that neighborhood.

 

cash to cash transaction

 

Roy wrote:

"Sellers need not collect sales tax when they ship goods out of state. I would pay no California sales tax if I ordered something from a local company and had it shipped to my daughter in Maryland or my son in Virginia."

The above statement is not 100% accurate. Depends on whether nexus exists between the seller and the state to which the goods are being shipped. In this new age of conglomo-banking - state lines do not provide the protection they use to.

 

One more proof of the problems with trying to comment on taxation issues - the level of detail needed for complete accuracy.

My comment should have been "Sellers need not collect sales tax when they ship goods out of state to a location where they have no presence." A purchase from my local coin dealer with only one business location would not be taxable if shipped to Maryland or Virginia, but a purchase from Walmart would be taxable in that situation.

Actually, at least in California, even that is not fully accurate. Sellers do not "collect sales tax". Sales tax is imposed on the seller, not the buyer. Sellers are, however, entitled (but not obligated) to collect reimbursement from their buyers.

 

The ability to skirt the law and issues of valuation is a different issue from knowing what the law actually is. I would assume that once your buying and trading reaches a certain threashold, indeed, the IRS will persue some kind taxation based on capitial gains, or if your
in business, simple net sales profit.

Ruben

 

smullen wrote:

"How do they prove what you bought it for???

They don't. They don't have to prove anything. The burden of proof is on YOU. Save all receipts. If you don't, they MIGHT assert the sales price is all profit !

Before we start a bunch of screaming about "presumption of innocence", that applies only in criminal cases where they want to take your LIBERTY (i.e. lock you up). "Presumption of innocence" does NOT apply in civil cases, which are decided on preponderence of evidence, NOT "beyond a reasonable doubt" standard of evidence. Similar for tax court cases.

BTW... a similar idea applies in The Great 1933 Double Eagle Debate. The government does not need to prove its case "beyond a reasonable doubt" - this is not a criminal case. It is a civil case, so the case will be decided by preponderence of evidence. IOW, both sides are treated as equals.

In a criminal case, a significant bias assists the defendant.

 

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