Selling of SILVER question ?

[Dozer D]

When someone sells a large quantity of JUNK SILVER COINS, is there any governmental reporting involved, taxes, etc.? Are there limits that one can sell and still be under the guideline wires? Has anyone run into these types of red tape hang ups at time of sale, or even at income tax time "April 15"? Your comments for discussion.

 

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[bertmaster2000]

There's a 28% tax on gains from selling coins. For example, if you found a silver dime, you bought it for $0.10. If you sell the dime for 10x face ($1.00), then you've earned $0.90. 28% of $0.90 = $0.252. This is the amount owed to the U.S. Government as a result of the sale of the dime.

You're better off leaving your coins to your kids and letting them deal with selling them. In their case, ignorance is bliss.

 

[Darth Walker]

Coins are taxable as collectibles 28% to 30% probably on the gain

 

[Darth Walker]

Good thing I do not have any silver coins

 

[Nitric]

Yes, there is a point where some coin dealers have to turn in a paper. Not only that, most will write a check. I don't know all the details, or even remember. But yes If it's a large amount you are required to pay taxes. Thank the Patriot act for some of it as far as information being collected and held! Like I said I don't remember details. I dealt in metals for a short time. And had to fill out papers for the patriot act, not to mention state and local. A dealer following every law, is required to do all kinds of things!!! Detailed Records of Drivers licenses and descriptions of everything bought and how much. This is anyone buying scrap gold or silver from the public.

So, state makes a difference too! If it's a few hundred, no worries. If it's thousands and thousands. Look a little further into it.

Like above!! I don't own silver or gold! So, I don't need to worry about it!

I'm trying to remember details...and it's been a while and my memory stinks! So, just check into it. If you ask a local dealer of coins or precious metals, they will tell you ahead of time. And what they are required to do. Or how! I won't post on a forum how or advise going around laws. That will get you into the same or more trouble than dealing drugs in some cases!!!!!!Believe it or not!!!

 

[minkybodl]

From what I've encountered what was once a free and easy under the table piggybank for gold and silver, has been changed thanks to laws hidden within Obama's Healthcare. Any amount over 600, if not any amount at all, must be reported by the business now. The local scrapyards and LCSs will be all setup to rake the government's long bony fingers down the spines of the poor honest workingmen. Like others said, my CRH will all be going to our Son.

 

[ArkieBassMan]

ALL income, regardless of how it is obtained and/or whether or not there is a "paper trail" that discloses of such, is supposed to be reported to the Infernal Revenue Service and therefore is subject to income tax. Different types of income are subject to different rates of taxation. The 28% mentioned above sounds correct.

At one time an IRS form had to be filled out immediately upon the sale of gold or silver above a certain smallish ($600?) dollar amount. However, I believe that I remember reading about that law being repealed or maybe just modified. I'm not completely sure on that, but I'm sure someone on this forum will know.

 

[Avago]

Do you really want to know the answer to this question? If you never find out the answer, you can claim ignorance

 

[OmegaMan]

As long as you sell less than $10.000, it's cash in hand every day and they won't bother with the IRS, At least that's where I go. Go into some of these places and ask. Can't hurt to ask.

 

[LooseChange]

Many dealers pay cash - particularly at coin shows.

Otherwise, the trigger for reporting for tax purposes is defined by what is regulated by the Commodities Futures Trading Commission (CFTC)

Take a look at the instructions for 1099-B on the IRS www (Instructions for Form 1099-B (2015))

Sales of precious metals.

A sale of a precious metal (gold, silver, platinum, or palladium) in any form for which the Commodity Futures Trading Commission (CFTC) has not approved trading by regulated futures contract (RFC) is not reportable. Further, even if the sale is of a precious metal in a form for which the CFTC has approved trading by RFC, the sale is not reportable if the quantity, by weight or by number of items, is less than the minimum required quantity to satisfy a CFTC-approved RFC.

For example, a broker selling a single gold coin does not need to file Form 1099-B even if the coin is of such form and quality that it could be delivered to satisfy a CFTC-approved RFC if all CFTC-approved contracts for gold coins currently call for delivery of at least 25 coins.

Sales of precious metals for a single customer during a 24-hour period must be aggregated and treated as a single sale to determine if this exception applies. This exception does not apply if the broker knows or has reason to know that a customer, either alone or with a related person, is engaging in sales to avoid information reporting.

The limit that triggers reporting by the buyer (via a 1099-B form) is $1000 FACE VALUE of 90% junk coin. It was changed to $600 market value for a very short time (via an ObamaScare rider), but was returned to the historical $1000 face value as part of a compromise with GOP.

Some of the bullion reporting limits per CFTC:
Fine gold: 32 ozt; or 25 coins CAD Maple, Mx ONZA, KRUG)
Fine silver: 1000 ozt
Fine platinum: 25 ozt
Fine palladium: 100 ozt

Most gov minted gold coins are exempt in all qty (US AGE, China Panda, others) - exempt for tax purposes that is. It is an honor system again. So, it is up to you.

Aside from the reporting for tax purposes, there is also the cash transaction reporting requirement. This is tracked for anti-money-laundering purposes. That limit is $10k and only applies if the transaction is in cash. If the transaction is in check, wire, etc it is not reported to the IRS at all. See instructions for form 8300 Form 8300 and Reporting Cash Payments of Over $10,000.

 

[CincinnatiKid]

I may, or may not know of a buyer that pays $1 under spot in cash, up to $3000 per transaction.
I may, or may not have established a business relationship with this real or possibly hypothetical person.
Even state lottery tickets are taxed after 1k.
Peace ✌