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Canadian_Nickle
Penny Hoarding Member
Canada
938 Posts |
 Posted - 07/10/2006 : 23:28:58
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So, if I manage to collect, say, $1000 in pure nickels, then sell them for a profit, do I have to declare it as income on my taxes?
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ImperialFleet
Penny Pincher Member
USA
217 Posts |
Posted - 07/11/2006 : 13:33:00
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that is something I have been wondering as well. Esp. for silver coins.
“Ultimately, the Fed can flood the system by buying any kind of asset, or even dropping bank notes from helicopters" -Fed Chairman Ben Bernanke |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 07/11/2006 : 14:07:01
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Yes, and I'm sure both of you would want to do the right thing and report it.
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If you can conceive it, you can achieve it. -Napoleon Hill |
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realcent
Forum Admin
USA
246 Posts |
Posted - 07/11/2006 : 14:10:47
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I do not claim to be a tax expert, even a little bit. I have my taxes done at H&R Block. The way I understand it though is that you would have to pay taxes on any gain you made.
So if you collected $1000 face value in nickels, and then sold them to someone for say, $2000 at some point, you would have to pay taxes on the $1000 profit.
RealCent
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Tourney64
1000+ Penny Miser Member
USA
1035 Posts |
Posted - 07/11/2006 : 22:55:04
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You would have to claim the income.
Income produced by a hobby is considered other taxable income unless it has consistently been profitable over the past few years. After three years of yielding an income, your hobby is considered a business and you are required to report it as self-employment income.
Otherwise, include the gross profit your hobby earned under the "miscellaneous taxable income" category. Remember, you may deduct the losses or expenses of your hobby as a miscellaneous itemized tax deduction as long as you report hobby income and pay the required taxes. Hobby losses can be claimed as a deduction up to the amount you are claiming as taxable income. |
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Question: taxes
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