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 Replies: 22 / Views: 2,826 |
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Moderator
 United States
189767 Posts |
No plans to flip or sell anything in my collection... ever... at least not while I am still above ground. My son says, "That is future me's problem."  |
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Valued Member
 United States
100 Posts |
@Jbuck: That brings up another good point. I wonder if coins as part of an estate get charged inheritence tax and how they figure the value if so. I'll ask...
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Moderator
United States
189767 Posts |
There is no federal inheritance tax, but there is a federal estate tax. The federal estate tax generally applies to assets over $12.92 million in 2023, and the estate tax rate ranges from 18% to 40%.I assure my heirs, they are well below that $12,920,000 threshold! 
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Valued Member
United States
100 Posts |
I hear ya. Sounds like my kids are safe as well. |
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Pillar of the Community
United States
4233 Posts |
Inheritance is a whole other ballgame. Your heirs get to reset the "basis" (value) to the day you died. Then they only have to pay capital gains on the difference between that and their selling price. In my very limited experience it's a huge benefit when inheriting real estate. With coins you'd have to determine their value on that specific date, which seems difficult. There's a thread on here I think on that very subject but I'm too lazy to look for it.
Yes, if you buy and sell within a year it gets taxed at your normal rate for your income bracket. I think the same applies for most other assets.
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Pillar of the Community
 United States
6572 Posts |
I wonder if the costs of grading, cleaning, storage can be considered expenses to offset the gains.
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Pillar of the Community
Canada
5404 Posts |
Great article by Jeffrey J Pritchard in the "CPG COIN & CURRENCY REVIEW "
Vol VI #3 . July 2023 . This is a publication from GREYSHEET.
The article is titled " Are you a Collector , Investor , or Dealer ?"
The IRS wants to know!
Certainly a great read for my American Cousins as it pertains to taxation
and Coins according to the IRS .
See if you can find a copy or get one from GREYSHEET.
Our rules in Canada our much different .
Edited by Pacificoin
07/27/2023 3:53 pm
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Pillar of the Community
United States
6572 Posts |
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Valued Member
United States
100 Posts |
Fantastic information folks. Thanks!!
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Pillar of the Community
United States
4233 Posts |
One interesting thing I learned recently regarding collectibles applies mostly to fine art. Apparently if you display an artwork in your home, you're not an "investor", it's for personal use, and thus a loss cannot be deducted. You'd have to have that Monet in storage instead. I suppose this pertains to coins if you have your 1894-S dime proudly illuminated on a wall in your foyer.
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Moderator
United States
189767 Posts |
Quote:
I suppose this pertains to coins if you have your 1894-S dime proudly illuminated on a wall in your foyer. Who would be so bold? |
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Pillar of the Community
United States
5863 Posts |
OK, this is probably blindingly obvious, but does that 28% capital gains tax get applied to the total amount of the sale or just the difference between what you originally paid for it and what you sell it for? If the latter, I assume that means it's critically important to keep good records of your purchases and that if you sell for a loss you wouldn't own any taxes, right?
My big problem is with bullion. Although I do have records of what I paid for various things, since so much of it is fungible it's hard to know, say, exactly which silver bar I paid $12 an ounce for and which one I paid $20 an ounce for. Or, worse yet, with the hundreds of junk silver coins I have accumulated over the years.
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Moderator
United States
189767 Posts |
Capital gains is exactly that. Gains. It is the difference between what you bought and sold. If you bought a some bullion at $100 and later sold it for $150, you owe tax on $50. So yes, I would say that record keeping is very important.
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Pillar of the Community
United States
5797 Posts |
From the link Branmeister provided above (underline is by me): "... The collector is considered an ultimate consumer and therefore has to pay sales tax on all purchases, unless they are shipped from an out-of state auction house or other vendor...." In Florida, coins should not have sales tax collected. The state considers it money and money is not subject to sales tax. I have been told this by several auction houses, one of which conducts the state of Florida unclaimed property auction each year. (I believe ebay and other venues erroneously collect sales tax on coins as a precaution. IMHO, it probably won't be resolved until there is a class action lawsuit.) Words of encouragement are one of the major food groups.
We need to consume them regularly to thrive and grow.
Edited by Petespockets55
08/25/2023 08:08 am
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Pillar of the Community
United States
5684 Posts |
I believe that comment by Heritage was just a general statement illustrating the difference between collectors and dealers—pertaining to everything they sell, including antiques, fine art, jewelry, etc. Sales tax is charged based on the laws of the buyer's state, and many states exempt coins from sales tax. I know Heritage is very good about not charging sales tax on coins when it is not required.
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Posted 07/27/2023 12:17 pm
