Taxes

[Piledriver]

Question:

Do Capital Gains taxes apply to junk if you sell it?

I know that on regular silver and gold bullion, the tax is 28% after you have it more than a year.

But what about Junk?

 

[RP4L]

Technically, all "collectibles" are taxed at 28%. Coins, including junk silver, are included in that category. Now, if you're selling stuff to local coin shops for cash... well, use your best judgement.

I've always had a problem with bullion being classified as collectibles. Bullion is almost always an investment and should be taxed like other capital gains investments.

 

[captaindoug]

Don't scrimp on the taxes. The government spends it so wisely.

 

[$ilver$urfer]

I sold $750 face value of 40%ers back in April-May and sold them at $43.10 an ounce. I spoke with the APMEX guy about this and he informed me that 40%ers ARE NOT reportable for tax purposes so I would not be getting a tax form mailed to me. He did tell me that 90%ers, bullion, gold, platinum, palladium, etc. ARE reportable for tax purposes. Hope this helps.

HH,

$ilver$urfer

 

[BillyOceansEleven]

I sold $750 face value of 40%ers back in April-May and sold them at $43.10 an ounce. I spoke with the APMEX guy about this and he informed me that 40%ers ARE NOT reportable for tax purposes so I would not be getting a tax form mailed to me. He did tell me that 90%ers, bullion, gold, platinum, palladium, etc. ARE reportable for tax purposes. Hope this helps.

HH,

$ilver$urfer

There is a difference between what a counterparty like APMEX is legally required to report and send out a 1099 for and what you are legally required to claim as income. I'm surprised that they don't have to report (supposedly) proceeds from the sale of 40s, but under tax law their isn't really any difference because gains from 40%s, 90%s, and bullions are all taxed as collectibles.

Of course if there is no 1099 form, the IRS would have no way of knowing about the gain unless they do an audit and find the payment, in which case you would probably be in a world of trouble for not reporting it. As RP4L said, use your best judgment.

 

[OmegaMan]

From what I have dealt with, 40% are not reported for tax purposes. The first $10,000 is cash on 90%, over that you get a 1099 form. That is just the coin shops out here.

 

[allen]

the government gets enough
of my paycheck and i will be
damned if they get any of the
money when i sell my gold, silver
and what little platinum i have.

 

[Diggin-N-Dumps]

the government gets enough
of my paycheck and i will be
damned if they get any of the
money when i sell my gold, silver
and what little platinum i have.

No SHI!!! ..Next thing I know, I will be Taxed on my Metal detecting Finds

 

[jrf30]

I sold $750 face value of 40%ers back in April-May and sold them at $43.10 an ounce. I spoke with the APMEX guy about this and he informed me that 40%ers ARE NOT reportable for tax purposes so I would not be getting a tax form mailed to me. He did tell me that 90%ers, bullion, gold, platinum, palladium, etc. ARE reportable for tax purposes. Hope this helps.

ANYTHING you sell at a profit is taxable. Maybe the 40% are not "reportable" by THEM, meaning you will not get a 1099-misc form from them. But not taxable? No, that is not his to state. YOu still have to pay taxes on the profit you made. Whether you do or not is something the government is trying to ovecome right now, with the new 1099 rules that were shut down recently, but legally yes you have to claim the profit on the 40% sales too.

 

[FormerTeller]

ANYTHING you sell at a profit is taxable. Maybe the 40% are not "reportable" by THEM, meaning you will not get a 1099-misc form from them. But not taxable? No, that is not his to state. YOu still have to pay taxes on the profit you made. Whether you do or not is something the government is trying to ovecome right now, with the new 1099 rules that were shut down recently, but legally yes you have to claim the profit on the 40% sales too.

Tax on sales or tax on profit? Seems to me it would be pretty hard to prove whether you paid for something or "found" it.

 

[Bigheed]

its on the basis price so if you have a receipt then its the delta between purchase and sales.

If you found it $0.50 is your basis price for halves, etc for other denoms.

 

[$ilver$urfer]

I sold $750 face value of 40%ers back in April-May and sold them at $43.10 an ounce. I spoke with the APMEX guy about this and he informed me that 40%ers ARE NOT reportable for tax purposes so I would not be getting a tax form mailed to me. He did tell me that 90%ers, bullion, gold, platinum, palladium, etc. ARE reportable for tax purposes. Hope this helps.

ANYTHING you sell at a profit is taxable. Maybe the 40% are not "reportable" by THEM, meaning you will not get a 1099-misc form from them. But not taxable? No, that is not his to state. YOu still have to pay taxes on the profit you made. Whether you do or not is something the government is trying to ovecome right now, with the new 1099 rules that were shut down recently, but legally yes you have to claim the profit on the 40% sales too.

Do you know what tax law that falls under so I can look it up? The US Tax Code is so confusing I'd like some direction here if you can provide it.

Also, here is a question for you, if one has to report any profits does that also mean one gets to deduct any costs associated with acquiring such item? I.E. - gas, mileage, wear and tear, and time? How does one go about this? Keep all gas receipts and miles, then count time and multiply by what rate, salary at work or minimum wage or some other hourly rate? The only ethical solution would be if the government can tax us on our "profits" then we should be able to write off everything mentioned above. Your thoughts on this or any other helpful information for other CRHers on here looking to sell some of their stash sometime soon would be most appreciated!

HH,

$ilver$urfer

 

[captainfwiffo]

Yep, you can write off that stuff. Technically you'll be filing as a small business I think. The best way to handle it is to have a professional handle your taxes; they'll pay for themselves easily. There are all kinds of credits and deductions you might qualify for without even knowing it. I saved like $600 the first time I had a pro handle my taxes, and I have a fairly average income.

 

[SFBayArea]

Yes, if giant corporations like Chevron & GE can get away with paying zero taxes using loopholes and tax deductions, you can too.

I would write it up as a small business and write off stuff like gas mileage to banks, post offices, etc. Receipts for car maintenence. I'm sure there's other crap that you can come up with if you look deep enough into the tax code.

Depending on the amount one gained on them. If it's just a couple hundred bucks on some 40%ers, I wouldn't sweat it. You can report it if you want. I'm sure they'll pay IRS agents who make $30/hr with benefits to come after you. But if one sold $750 face value in 40% halves, I would report it barring I can write off business expenses like mileage to banks, etc.

Do people report sales of their garage sale items? How many people do you know that reported proceeds from their garage sales?

I did sell some copper cents at the end of the year last year and made a couple hundred bucks. The guy that did my taxes counted them as a capital gains at the time. He advised me that in the future, it's better to write it up as small business so that I can write off stuff like mileage to banks, post offices, etc.

 

[quiksilver]

lol taxes

 

[Argentium]

Why not follow the example of our leaders , like congressman "Weener " - just put your junk up
on twitter ! Argentium.

 

[SFBayArea]

Why not follow the example of our leaders , like congressman "Weener " - just put your junk up
on twitter ! Argentium.

Why should he even resign? When you can get re-elected after soliciting prostitutes like Senator David Vitter.

 

[TxTim]

Tax basis on a half = $.50 unless you bought it locally from a guy on craigslist at 25X face.
Prove me wrong, make your own receipt. F'm!
They get enough of our damn money. Drug test all food stamp and welfare recipients!

 

[ivan salis]

florida plans to drug test for welfare & unemployment * folks -- only fair -- since you gotta be drug tested these days to "quailfy" to be able to get a job & work so that you can "pay taxes" in --- in that way its only fair that folks are recieving the benefiets be tested to take those tax dollars out --all politicans of any level and govt & public employees should also be randomly drug tested without any warning what so ever as well to "recieve" public money as their "salarys"-- you fail or refuse your fired , on the spot.

 

[jim4silver]

Speaking of taxes on precious metals, check this out. Hope nothing happens to the website KITCO. It is one of my favorites for articles and PM prices.

http://www.zerohedge.com/article/kitco-charged-massive-tax-fraud-scheme-business-viability-question


Jim