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<p>[QUOTE=&quot;Rono, post: 360381, member: 6492&quot;]Howdy,</p><p>&nbsp;</p><p>Good luck.</p><p>&nbsp;</p><p>The IRS has mixed messages in some respects.&nbsp; They define any sale of an asset for a profit as a taxable event.&nbsp; This means that if you sell that coin for more than you paid, it&#039;s a capital gain and a taxable event.&nbsp;&nbsp; The same would be true for that &#039;57 chevy you bought new for $1500 and stored in the barn and is now worth $20K or so.&nbsp; </p><p>&nbsp;</p><p>But, they also cut us all some slack with their &#039;garage sale&#039; exemption from the above.&nbsp; This basically allows us to sell misc. stuff in a garage sale type method and not have to report.&nbsp; [most collectors use this exemption whether we actually qualify or not]</p><p>&nbsp;</p><p>Now the other aspect of this is whether the taxable event (your selling a coin for a profit) is taxed as an individual (hobby) or a business.&nbsp; If a hobby, you can&#039;t deduct expenses.&nbsp; If a business you can.&nbsp; </p><p>&nbsp;</p><p>However, they make it tough to call yourself a business as they pretty much require 3 years worth of business history.&nbsp; </p><p>&nbsp;</p><p>This means that it&#039;s all a bloody mess and you&#039;re dealing with the IRS which can be enormously unfriendly to deal with.&nbsp; You simply cannot blow them off or take them lightly.</p><p>&nbsp;</p><p>1.&nbsp; You MUST keep great records or EVERYTHING regardless of which path you choose.</p><p>&nbsp;</p><p>2.&nbsp; If you&#039;re doing any real dollar amount of business, you better contact a tax accountant.</p><p>&nbsp;</p><p>3.&nbsp; Do not even consider ever lying to the IRS for any reason whatsoever.&nbsp; If you fly under the radar for a year or so, fine, but if they catch you, fess up immediately and pay at the window.&nbsp; If the Fed&#039;s will jail Martha, they&#039;ll take you and I out and shoot us.</p><p>&nbsp; </p><p>good luck,</p><p>&nbsp;</p><p>&nbsp;</p><p>rono[/QUOTE]</p><p><br /></p>

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