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How Do I Calculate My IRS Reporting?

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Author Previous TopicReplies: 25 / Views: 1,373Next Topic Page 2 of 2
Bedrock of the Community
United States
20246 Posts
 Posted 03/16/2021  09:05 am  Show Profile   Bookmark this reply Add just carl to your friends list Get a Link to this Reply
Might be to late but you should have just sold them on ebay and said nothing to anyone about it.
just carl
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United States
3111 Posts
 Posted 03/16/2021  10:35 am  Show Profile   Bookmark this reply Add Zurie to your friends list Get a Link to this Reply
As of next year, anyone with eBay sales totaling more than $600 in one year will have their sales reported to the IRS, so this question will be relevant to a lot of people.
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Canada
3917 Posts
 Posted 03/16/2021  10:47 am  Show Profile   Check Pacificoin's eBay Listings Bookmark this reply Add Pacificoin to your friends list Get a Link to this Reply
The answer to your question is pretty easy actually .
But first congrats on your "terrible" dilemma .
Great foresight on the collecting! Cards are red hot right now .
We just went through a similar US Tax issue ( my wife is American
and just finished up with the IRS)
You can easily , with Heritage help arrive at a cost base for
the original purchase of the cards , by using guides of the
time of acquisition . Since you were not a dealer the items are personal
use items and should only be subject to any Capital Gains / Losses incurred.
The use of an accountant who is strong in the Collectibles area ,
HIGHLY RECOMMENDED, irregardless of what we advise here.
Best of Luck , nice problem to have , hope you do very well !
Jack / paccoin
Edited by Pacificoin
03/16/2021 11:52 am
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Canada
3917 Posts
 Posted 03/16/2021  10:48 am  Show Profile   Check Pacificoin's eBay Listings Bookmark this reply Add Pacificoin to your friends list Get a Link to this Reply
@ Carl ......a most terrible piece of advice !
Pillar of the Community
United States
1238 Posts
 Posted 03/16/2021  11:14 am  Show Profile   Bookmark this reply Add NumisEd to your friends list Get a Link to this Reply

Quote:
Since I have no interest in the cards, and none of my potential heirs do either, I decided to auction them off and have placed my entire collection with Heritage Auctions. I am aware that the profit I make will be subject to capital gains taxes. I don't know what I paid for them originally. as it was 20 years ago and I have no receipts. What sort of determination would be acceptable to the IRS?


How about donating the collection to charity and take a Full Market Value Deduction form your income taxes?
Another option is to place the collection in a Charitable Remainder Trust, with you and your kids as Beneficiaries and a Non-Profit as the Designated Charity?
Not sure if this is something you are willing to consider.

https://www.fidelitycharitable.org/...-trusts.html
Edited by NumisEd
03/16/2021 11:15 am
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100811 Posts
 Posted 03/16/2021  11:38 am  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
@ Carl ......a most terrible piece of advice !


Pillar of the Community
United States
1841 Posts
 Posted 03/16/2021  11:48 am  Show Profile   Bookmark this reply Add Bump111 to your friends list Get a Link to this Reply
Did you happen to sell the items as a small business or as an individual? That may make a difference in the requirements for listing and tax rate. (I'm definitely not a tax expert, just looking at the IRS info.)
Valued Member
United States
98 Posts
 Posted 03/16/2021  1:37 pm  Show Profile   Bookmark this reply Add 1847bill to your friends list Get a Link to this Reply
There is nothing better than a really good cpa.
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242 Posts
 Posted 03/16/2021  2:01 pm  Show Profile   Bookmark this reply Add Kcm to your friends list Get a Link to this Reply
NOTHING?!?

Given the option of choosing between a very interesting coin or a rather valuable one, I'd choose the former every time . My vexation lies in the fact that the two so often coincide.
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United States
161 Posts
 Posted 03/16/2021  3:37 pm  Show Profile   Bookmark this reply Add coin rejector to your friends list Get a Link to this Reply
"A capital gain occurs when you sell an asset for more than you paid for it. If you hold an investment for more than a year before selling, your profit is typically considered a long-term gain and is taxed at a lower rate."

Those suggesting to "do nothing" regarding non reporting of capital gains.... if you want to go to prison, feel free to say nothing to the IRS. If not.... as 1847bill alluded to, talk to a cpa.
Edited by coin rejector
03/16/2021 3:39 pm
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United States
1238 Posts
 Posted 03/16/2021  3:51 pm  Show Profile   Bookmark this reply Add NumisEd to your friends list Get a Link to this Reply
Collectibles such as coins are taxed at a higher rate of 28%. Short term or long term.
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3111 Posts
 Posted 03/16/2021  4:02 pm  Show Profile   Bookmark this reply Add Zurie to your friends list Get a Link to this Reply

Quote:
Collectibles such as coins are taxed at a higher rate of 28%. Short term or long term.


Actually, the long term capital gain rate is a max of 28% for collectables, but the short term cap gain rate is your ordinary income tax rate, same as for other short term cap gains.
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United States
306 Posts
 Posted 03/16/2021  11:10 pm  Show Profile   Bookmark this reply Add goldnugget to your friends list Get a Link to this Reply
*** Political Commentary Removed by the Staff ***
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Australia
1029 Posts
 Posted 03/17/2021  12:18 am  Show Profile   Check ryurazu's eBay Listings Bookmark this reply Add ryurazu to your friends list Get a Link to this Reply
depends on how much more money your making say its 500 dollars in gains post expense then I don't think the IRS going to chase you for that. However if your making like 100K+ then yeah there going to be some serious question asked and you should definitely ask a account or a CFA as you would want to minimise you taxes including what to do with the money once it comes into your account, such as 401K.
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1053 Posts
 Posted 03/26/2021  4:23 pm  Show Profile   Bookmark this reply Add machine20 to your friends list Get a Link to this Reply
Why not claim as a small business and acknowledge other costs, home office, packing, gas, fees, that come with it?
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