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 Replies: 20 / Views: 2,563 |
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Pillar of the Community
United States
4008 Posts |
Quote:
If I sell here I guess it would have to be MO/ or check only and that sucks. A US postal money order works well with anyone who is honest. Crooks avoid taking these because they know that mail fraud is a federal crime with some heavy duty penalties attached. They also know that the USPO takes a VERY dim view of people who use their money orders for nefarious purposes. They can and they will investigate all such crimes to the extent necessary to run the jackals to ground. That said, the people on this web site strike me as being very honest and decent folks. This is not to say that a few of them might not be but the majority seem like very good people. Selling them here for close to fair value should work well. I'd be interested in buying some of those myself if the price were right.  |
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Pillar of the Community
United States
2335 Posts |
Going over the $20k level of sales through Paypal might generate a report to the IRS. However, that doesn't mean you are free of tax liability up to that point. Under current tax law you are required to pay tax on any/all gains made from the sale of precious metals. How you handle that is up to you, but you need to know that any time you are paid by Paypal you have created a paper trail that documents your sale activities.
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Rest in Peace
United States
9104 Posts |
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Anyway just looking for advise on where is the best place to take it with the least amount of tax implications. You're just looking for information on how to cheat on your taxes without getting caught. Tax implications are cut and dried. If you sell coins or bullion or whatever, you owe taxes on the profit. |
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Pillar of the Community
 1283 Posts |
Thanks for the advice, i'll leave it at that.
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Pillar of the Community
United States
931 Posts |
How many people do you think actually pay taxes on their PM profits? I'm asking a serious question. My local coin shop charges no taxes on anything I buy from them with cash. I asked him why no taxes and he said that there was no tax due when you are trading currency for currency. Not true?
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Pillar of the Community
United States
1064 Posts |
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no tax due when you are trading currency for currency I would find that hard to believe, unless you were selling for, and paying with, face value. My state has a 6.25% sales tax, with store-bought food and clothing being the ONLY exception. Is your coin shop in a state that has a sales tax? |
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Pillar of the Community
United States
2335 Posts |
Quote:
How many people do you think actually pay taxes on their PM profits? I'm asking a serious question. My local coin shop charges no taxes on anything I buy from them with cash. I asked him why no taxes and he said that there was no tax due when you are trading currency for currency. Not true? If I had to guess I'd say LOTS of people don't pay tax on their PM profits. In my neck of the woods the local antique mall doesn't charge sales tax on coins....but they do on everything else including bullion. |
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Pillar of the Community
United States
931 Posts |
I live in New York but my coin shop is in Pennsylvania. I don't know if they have sales tax or not.
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Pillar of the Community
1283 Posts |
I live in Illinois and none of the coin shops around here charge sales tax for coins.
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Pillar of the Community
United States
2589 Posts |
Evasion on precious metals and other secondary market good is part of the reason why the federal goverment tried to expand the 1099 to goods sold over $600. They get slaughtered by the amound of tax revenue lost from the secondary markets. Think of all the tax revenue lost in garage sale proceeds alone lol.
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Pillar of the Community
United States
4008 Posts |
Unless a state with a sales tax specifically excludes tax on coins, then tax is owed at the state level. It is owed on any profit at the national level regardless of what the state law is. I haven't been to any coin shows yet but I would imagine that sales tax collection is not a priority there.
The excuse about exchanging money for money not being taxed is bogus. That is not what we are doing. If it was, they would exchange 10 silver dimes, 4 silver quarters, 2 silver halves, or a silver dollar for $1 in FRN paper.
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Rest in Peace
United States
9104 Posts |
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I asked him why no taxes and he said that there was no tax due when you are trading currency for currency. Not true?
It's all in the interpretation, and I'm not about to play lawyer here. "cash" can mean any monetary tender: paper money, coins, check, money order, wire, etc. "currency" can mean the same as cash. Turning $100 bills into a MO isn't likely to change the law viewing them as cash. What enforcement is more likely to say is "trading currency for currency" means even-up, two fives for a ten, and that "trading" $40 in paper money for a $1 ASE is a sale subject to tax. I suspect a better argument is that coins are either being bought for resale or investment, basically the same thing. While you pay tax on profits from trading stocks, you don't pay sales or property tax. If I buy a case of 2x2s to resell, I don't pay sales tax. |
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Rest in Peace
United States
9104 Posts |
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Think of all the tax revenue lost in garage sale proceeds alone lol.
sales tax maybe, but there's rarely a profit selling a used shirt, so no income tax. |
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New Member
United States
2 Posts |
I think if you sell on a forum through paypal. There is only a 4% fee to paypal for protection.
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Rest in Peace
United States
9104 Posts |
 SUPUNDGRD Not understanding your point. PayEnemy is charging you to handle the money, like the PO charges for a MO, or the bank charges to send a wire. The protection is a bonus, and you might be unhappily surprised if you ever use it. Taxes are an issue between you and the city, county, state, IRS, or other taxing unit. |
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Replies: 20 / Views: 2,563 |
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Posted 07/06/2011 09:01 am
