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 Replies: 42 / Views: 4,550 |
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New Member
United States
35 Posts |
Only if he is selling them as "silver dollars" but if he says that they are not silver then it is fine
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Valued Member
United States
68 Posts |
it seams like this is what people are doing with the new pennys. I was looking at getting a set of 2010 pennys and it was 2 bucks for a p and a d, but roll of each was like 8. Does not make sence.
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Valued Member
Australia
126 Posts |
haha I should give this a try on ebay :) |
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Pillar of the Community
United States
1547 Posts |
Quote:
I think if I could buy coins and sell them for a 55% profit on a regular basis all day long, I'd quit my day job and do that. His income statement says he's operating on a 45% margin on his cost of goods sold (.90/2.00). That's just basic accounting 101. Next he has to subtract out his operating expenses to get to his gross profit before taxes. In figuring those expenses, don't forget to factor in his time, which is also money. In short, when it's all said and done, he's not making the killing you think he is. |
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Pillar of the Community
United States
968 Posts |
I doubt he has much in the way of operating expenses and I'd be shocked if he reports this on his taxes. It sounds like some guy that gets Ikes from that dealer or from some other source (like an estate sale) and posts a Craigslist ad selling them for $2. If he operates with cash there isn't really a paper trail, and if he has a normal job or another business the IRS wouldn't have a reason to suspect he does this on the side.
I do agree that he's probably not making a killing, but for a different reason. I doubt he is selling all that many of them. To make $100 per month at it he'd have to sell 111 coins, and that seems like a lot for a craigslist ad.
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Pillar of the Community
United States
1547 Posts |
Sure he can play games and he can cheat on his taxes and he can defraud the IRS and it doesn't take much of an intellect for that. An idiot like that, he's likely ignoring his expenses, too, if that's indeed how bright he is, resulting in his thinking he's making more than he is. Point is, 45% isn't an unreasonable gross margin on sales. It's high, but it's by no means out-of-sight. He's making money, for sure, and I didn't mean to suggest he isn't. If he's "unethical," at all, though, it's more likely in the kinds of areas you pointed out, and not in his bottom line. Hey, IMO...how's that?  |
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Pillar of the Community
United States
1882 Posts |
This is kinda like watching CSI. Someone is murdered. Cop finds a crumpled coke can in the bushes next door. It is a special coke can, only sold at a particular store, at 26th and Maple. Before you know it, they've got the killer. Nod sees a a guy who buys a bunch of Ikes for a $1.10 a piece at a coin shop. May or may not have anything to do with a craigslist ad. Now he's an idiot who cheats on his taxes?  Just IMO.  |
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Pillar of the Community
United States
1547 Posts |
It was a little off-script but then how does one reasonably reply to a hypothetical but by first accepting then dealing with it? Gotcha there?  |
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Pillar of the Community
United States
968 Posts |
We could take it to the next step and hypothesize on what nefarious schemes are being funded by this price gouging tax cheat!
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Pillar of the Community
United States
1934 Posts |
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Pillar of the Community
967 Posts |
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Pillar of the Community
United States
1547 Posts |
Quote:
Maybe he is not buying them at the coin store, but making them in his basement and them selling them on graigslist. Sounds like Henning from the 1940's on nickels. He's probably trying to make enough money to buy high speed printing presses to put the North Koreans out of business. He had better hurry because they are coming out with new hundred dollar bills next year! Don't you think we might be assuming a little too much, here? I mean, I don't mean to seem inquisitive, but how do we know this is a "he?" |
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Replies: 42 / Views: 4,550 |
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Posted 04/25/2010 6:25 pm
Saruma
