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n/a
deleted
16 Posts |
 Posted - 01/25/2008 : 00:45:58
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If I sell my metals, do I have to worry about the capital gains tax? I mean, if I sell an oz of gold on ebay, or a roll or pre-65 quarters, is the capital gains tax applicable?
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 01/25/2008 : 05:00:53
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| I sold silver to a dealer in the past and he said it is considered like we had a yard sell to sell off our old stuff as far as the IRS is concern.......if you know what I mean. Of course consult your tax accountant as we don't give out tax advice here......... if you know what I mean. |
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Think positive. |
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copperbullion
Penny Pincher Member
Australia
136 Posts |
Posted - 01/25/2008 : 05:07:28
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| Yes We know what you mean..... and agree! |
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starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
 Posted - 01/25/2008 : 08:57:41
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I researched this the other day. You can sell up to 24 non-approved bullion coins (Canadian Maple Leaves, Libertads, bars, etc. without being reported to anyone but the police (in case of theft). THERE IS NO LIMIT ON THE SALE OF SILVER AMERICAN EAGLES. THEY DO NOT NEED TO BE REPORTED TO THE IRS!  Yet another reason to prefer American Eagles over 90% WHICH MUST BE REPORTED! These rules apply to gold too!!!
As far as eBay and the government is concerned, as long as you don't go crazy and make more than $500 extra income in a month, they've got bigger fish to fry. |
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El Dee
Penny Hoarding Member
USA
547 Posts |
Posted - 01/25/2008 : 09:44:39
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quote:
Originally posted by Bradley
If I sell my metals, do I have to worry about the capital gains tax? I mean, if I sell an oz of gold on ebay, or a roll or pre-65 quarters, is the capital gains tax applicable?
Yes.
Common misconception here is that reportability is equivalent to taxability. It isn't. Similarly, if your neighbor gives you $500 for helping side his house, he need not give you a 1099 form, but it's self employment income to you all the same.
When the IRS agent asks you why you didn't report precious metal sales on your tax return, just say the guys on the board said you didn't have to. Just hope no agents are lurkers here.
El Dee, CPA |
Trust the government? Ask an Indian. |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 01/25/2008 : 16:14:22
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Capital gains can be outweighed by capital losses, selling a dog of a stock or a collectable coin that turned out to be not-so-collectable can balance out the gains.
Officially and/or legally, we are supposed to report all gains, however in the real world this is not always the case, especially with individuals forgetting to report odd sums of money and with little or no paper trail (not ebay, sales form a church sale, though none of us on this forum would ever recommend cheating on taxes.) |
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starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/25/2008 : 16:17:43
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| El Dee is correct (I spent many hours researching today), and it' all in the terminology (reportable vs. taxable). I stand corrected. For a government that wants you to OBEY, they sure make it hard to find the rules. However, how is the government going to know that I sold something if it isn't reported? And, even if they somehow knew that I sold 20 Silver Eagles yesterday (which I didn't Mr. or Mrs. Agent), are they going to hunt down a small-fry like me for 28% of a forty dollar profit (an example would be if I bought at $18 and sold at $20 over a 1 year period)? Not bloody well likely. In addition, I really could care less if an agent "lurks" here (how un-American that would be). Also, If they ever want to get technical with a little guy like me, I'll start claiming losses on my tax forms and just keep the coins forever. You see, I paid $18 for something that my own highly trustworthy government says is legally worth only $1 (the mint printed it right there on the coins for all to see - so I lost $17 per coin the minute I left the store). Imagine how much income you could write off in a year!!! I'd like to see them take it to court. Bad publicity, many potential minting issues, as well as an open floodgate for other cases involving commerce and trade. The mint seems to have really (unintentionally) set up the IRS on this one (see new post). For now, I guess there's always trading up, IRAs, passing them on in a trust, etc. All legal ways to screw the illegal IRS out of its supposed share of my hard-earned 'wealth'! Didn't our forefathers have some sort of a tea party to revolt against excessive taxation? Live Free or Die! |
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 01/25/2008 : 21:05:22
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Basically if you make money.. the government is your partner.. and they want their share. If you lose money, they consider it a hobby. Though you can offset your gains in one area by your losses in another.
The government hates to miss out on any tax revenue they feel they are entitled to. Heck, wars and rebates are expensive.. not to mention the normal things they have to pay for.. like teachers. They really need the money. They are currently working on researching the bigger eBay sellers to make sure they remembered to report the income from all those sales.. no matter how many usernames they use.
Interesting thing.. on paper you theoretically made money because your sale price was greater than your purchase price, but in reality you lost money because those gains were not indexed to inflation. Because of the declining value of the dollar, the dollars you received, though they may be greater in number, actually have less real value than the dollars you initially invested. |
If your percentages are low.. just sort more. If your percentages are high.. just sort more.
Now selling Copper pennies. 1.6x plus shipping. Limited amounts available. |
Edited by - HoardCopperByTheTon on 01/25/2008 21:10:32 |
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starwarsgeek171
Penny Hoarding Member
USA
651 Posts |
Posted - 01/26/2008 : 07:54:00
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HoardCopper, I almost fell out of bed laughing when I read the "teacher" comment. Hey, at least my job is recession-proof, and my eBay sales are only around 300 items or so, so I doubt they'll be investigating me. I think I'd actually find it funny if they did - like I couldn't pay off their sad little fine (my wife is a hospital pharmacy director) while raising a stink in the local media (poor, well-liked teacher being assaulted by big brother). This forum is the best.
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Capital Gains Tax
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