Quick Question

[eolson3]

How is everyone reporting their finds and profits to the government this tax season Just trying to get a head start.

 

[namster]

How is everyone reporting their finds and profits to the government this tax season Just trying to get a head start.

Have you sold anything?

 

[golden silver]

Only if you sell.

Golden Silver

 

[47thelement]

I only sell my clad. The best l've ever done is break even. So if anybody can figure out what the tax of $0 is I'll gladly pay it. Crap please president Opaymore isn't listening he'll figure out a way

 

[Piledriver]

You don't have to report anything unless you sell and make a profit.

The profit is reported on Sched D, for Capital Gains.

If you have held the coin less than one year, the profit will be taxed at the regular rate for your income.

If you have held it more than one year, it is taxed at 28%.

BUT if you are self-employed or not working at all, (and you usually don't pay federal tax) the tax may not add to your overall tax burden if the profit does not exceed your exemptions and deductions.

Selling huge amounts after one year can be very expensive and financially inefficient.

Hope it helps.

Keep on Rollin' !

 

[namster]

Crap please president Opaymore isn't listening he'll figure out a way

 

[n8dagr8345]

Interesting topic- My question fits in here, but a bit different than the original question.

If I plan to sell 1000 face value or more(so 10k silver value or more). What would you all recommend for me to not have to give a big chunk to uncle sam?

Write off gas mileage? What else?

 

[hyperHunter]

If I plan to sell 1000 face value or more(so 10k silver value or more). What would you all recommend for me to not have to give a big chunk to uncle sam?

As far as I know, capital gain from selling Precious Metals are taxed at 28% no matter what your tax rate is, which really sucks.

I would sell them to your friends/families/relatives in cash. I'm sure someone will be interested. Win-win for both parties. They pay less, you get more. The downside is that it will end up with different transactions.

 

[Piledriver]

I read an article that maintained that if you barter them for anything other than cash, then taxes are not applicable.

However I am not a tax consultant, so Do Your Own Due Diligence.

 

[BCD11]

http://www.irs.gov/irs/article/0,,id=186056,00.html has some good information regarding hobby and/or business activities that we as CRH'ers might engage in.

Even as a hobbiest, you MIGHT be able to zero out your gain on a sale by virtue of the expenses (auto being a big one) you've racked up over time accumulating your sold loot. This is especially so if you have done a lot of driving to accumulate your stash.

If you are a big time sorter it might be to your benefit financially to establish yourself as a small business. You MIGHT be able to take a loss on your tax return, contribute to a retirement plan, etc.

Take note of the "MIGHT"'s in the previous paragraphs. There are only two sure things in life, death and TAXES, eveything else comes with strings attached. But, with a some record keeping, timing, and planning you might, at the very least, hold the taxman at bay for a bit.

Then again, you might take the tack a lot of people do. They figure they're small time, not on the radar screen, "so let them come to me." I'm not saying it's right, it's just the way it is.

 

[BCD11]

I read an article that maintained that if you barter them for anything other than cash, then taxes are not applicable.

However I am not a tax consultant, so Do Your Own Due Diligence.

"Do Your Own Due Diligence" is good advice Piledriver. Barter is the basis for most underground economies, the intent of which is to escape taxes.

"Nevertheless, even if no Forms 1099-B or 1099-MISC are filed, bartering is generally taxable to the extent of the fair market value of the products or services bartered under Internal Revenue Code Section 61." from the Internal Revenue Code. If you go the barter route, and consider it non-taxable, make sure you've got your ducks in line as to reasoning should the taxman should come calling.

 

[Piledriver]

Thanks BCD11 !

I'm just a lill Ole CRHer enjoying a great hobby.

No way do I want an interview wit those dudes.

I just want to...

Keep on Rollin' !

 

[BCD11]

I'm just a lill Ole CRHer enjoying a great hobby.

No way do I want an interview wit those dudes.

I just want to...

Keep on Rollin' !

Amen Piledriver!

Those dudes are generally a pretty fair bunch. However, if they find out you're trying to hoodwink 'em, serious discomfort can ensue.