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<p>[QUOTE=&quot;justafarmer, post: 203577, member: 3926&quot;]smullen wrote:</p><p><br /></p><p>&quot;How do they prove what you bought it for???</p><p><br /></p><p>For example, one of the shops I buy from only takes cash and doesn&#039;t give receipts.</p><p><br /></p><p>The other give receipts, but you could buy 10 slabbed coins, 10, 10oz bars, 3 SAEs and 2 proofs sets and a magazine and the receipt would say one grand total, its not itemized...</p><p><br /></p><p>So what would keep me from buying a coin for 50.00 cash selling it for 200 and saying I bought it for 150, so my gain is only 50?</p><p><br /></p><p>Plus, I could deduct for shipping or cost to drive to the shops to get the coins...</p><p><br /></p><p>Same with Bullion, the price bounces daily...&quot;</p><p><br /></p><p>The IRS doesn&#039;t have to prove what you bought it for. Your basis in the asset is considered to be $0.00 unless you can provide documentation to the contrary. So in your senerio above, being that you have no documentation of what the purchase price of the coin in a tax audit situation your taxable gain would be $200 less the face value of the coin.[/QUOTE]</p><p><br /></p>

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