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Pillar of the Community
 United States
8938 Posts |
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Because there are laws. Lameeeeeeeeeeeeeeeee |
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Pillar of the Community
United States
7947 Posts |
2021. If there is a record of the transaction submitted for tax purposes it will bear the date the check was cut. Nothing ambiguous about this situation. If an investment account sends you a dividend check dated December 1, it will show up on a 1099 as a December transaction regardless of when you deposit the check. You then need to determine how much of that is a gain, and you should have documentation to prove it in the event you are audited, which is a very low probability. As pointed out by @hfj, maybe some of the coins sold at a loss, if they were fairly recent purchases. I also agree with the statement about consulting with a tax professional BEFORE you make such a decision to sell. Once you sell, it's too late to plan how to minimize your taxes. Quote:
Hypothetically, of course, why would you report the gain in the first place? To avoid the penalties and interest you will be charged by the IRS if the sale is reported to them by the auction house, and you have neglected to report them Edited by tdziemia
09/06/2021 08:35 am
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Pillar of the Community
United States
2869 Posts |
The my advice is hide the gains in the coffe pot.
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Bedrock of the Community
United States
20753 Posts |
What gains? Didn't you actually loose a lot of money on this?   |
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Moderator
 United States
54282 Posts |
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The auction company cuts me a check for my share and it's dated Dec 1st. I receive the check on December 10th, and deposit it on Jan 5th 2022. Are the capital gains reportable for 2021, or 2022? Under both the cash method or accrual method of accounting any gain would be reported in 2021. The year you deposit the check is irrelevant. Show your financial support of the Coin Community Family (click here)See my topic on Mexican Numismatic Medals (click here) |
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Moderator
United States
188770 Posts |
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Lameeeeeeeeeeeeeeeee Seriously?  I will send you a cake in jail. No file.  |
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Pillar of the Community
United States
8938 Posts |
Quote:
Seriously? I will send you a cake in jail. No file. I would never advocate someone ignoring a law. Never, totally. But if hypothetically I were to make a joke about it Mr. IRS man it'd only be that. I just said that it was lame |
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Bedrock of the Community
United States
17884 Posts |
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How on Earth do you work out the capital gains tax on each of these? You make the best guess you can as to what you paid for them. As long as you try to be honest about it the IRS will probably accept it. If you aren't they may decide to value at face value for your starting basis. |
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Bedrock of the Community
United States
94367 Posts |
Most collectors of hard assets do so with the expectation of not paying taxes on a profit at resale.  Edited by Coinfrog
09/07/2021 10:31 pm
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Moderator
United States
188770 Posts |
Quote:
I would never advocate someone ignoring a law. Never, totally. But if hypothetically I were to make a joke about it Mr. IRS man it'd only be that. I just said that it was lame Nothing to see here, Big Brother! Just a couple of coin chaps performing an academic social experiment to flush out the real criminals.   Quote:
Most collectors of hard assets do so with the expectation of not paying taxes on a profit at resale. Another reason why I do not sell coins.  |
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Pillar of the Community
United States
4593 Posts |
Step-up at death, baby, all the way.
-----Burton 50+ year / Life / Emeritus ANA member (joined 12/1/1973) Life member: Numismatics International, CONECA Member: TNA, FtWCC, NETCC, EveryCountry (online) coin club Owned by three cats and a wife of 40+ years (joined 1983) Author: 3rd Edition of the Sample Slabs book, https://www.sampleslabs.info/ |
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New Member
United States
27 Posts |
Starting in 2022 as dictated by the current administration and the new 30K IRS agents they hired any sale of anything over $600 has to automatically be reported by any auction house including ebay. starting at end of year you will need to provide to your auctioneer your I.D S.S Card and sign full tax paperwork for the government to get its 25% cut. |
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Pillar of the Community
United States
5191 Posts |
Even though I am not running a numismatic business, I have started to track all my coin buys and sales in an Excel spreadsheet. I also always keep receipts.
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Pillar of the Community
United States
7947 Posts |
Quote:any sale of anything over $600 has to automatically be reported by any auction house including ebay. As it should be ... Why should the capital gains on coins be treated any differently form the capital gains on real estate, stock, or anything else?  Edited by tdziemia
09/18/2021 8:09 pm
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New Member
United States
27 Posts |
Well some examples of the 2022 change that hurts people who might be selling things to pay for expensive medications or the coins owner has passed away and the money is needed for burial fee's.
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Replies: 23 / Views: 3,158 |
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Posted 09/06/2021 08:14 am
