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 Replies: 10 / Views: 2,913 |
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Valued Member
Australia
191 Posts |
This might be a bit of a newbee question, however I was wondering if coin collecting gets filled in on a persons tax return each year. Is selling coins considered capital gains? If so is there some sort of limit you need to pass before you declare it (i.e. if I sell a single 1966 50c coin on ebay do I need to declare that?), alternatively is a bit of coin buying and the occasional sale (even selling coins found noodling) simply classified as a hobby and doesn't need to be declared? Any help would be appreciated. |
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Moderator
 Australia
16827 Posts |
I've never sold high-value coins, so I don;t have first-hand experience on the issue. But here's my understanding of it. The answer depends ultimately on how much you originally paid (or "should have paid") for the coin. The Australian CGT regulations, as they now stand, state in regard to exemptions for "collectables": Quote:
You disregard any capital gain or capital loss you make from a collectable if any of the following apply:
- you acquired the collectable for $500 or less
- you acquired your interest in the collectable for $500 or less before 16 December 1995, or
- you acquired an interest in the collectable when it had a market value of $500 or less.
If you dispose of individual collectables that you would usually dispose of as a set, you are exempt from paying CGT only if you acquired the set for $500 or less on or after 16 December 1995. So basically, if you paid less than $500 for a coin, you don't have to worry. If you paid more, then yes, you are supposed to declare capital gains (profit made from selling the item). You're also supposed to keep purchase receipts and sales dockets with your other tax records. For coins found "noodling", the "purchase price" would be face value, so unless you're finding $500 face value (or higher) coins in circulation, you shouldn't have to worry about them. Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Bedrock of the Community
Australia
21786 Posts |
Fortunately, almost all of my most valuable ancients were acquired before 1995, and I have the receipts, which helps with their provenance.
I don't have quite that amount of spare cash to spend on individual purchases these days.
I am cynical enough for the introducton of the CGT to change my purchase strategy somewhat. Rather than bias my purchases towards ancients, I have, since 1995, opened up my buying strategy to include all cultures, all centuries.
The result has been beneficial numismatically, because my collection has become a much wider ilustrative statement of World history, since the invention of coinage.
Much wider field of collecting interest, and far more challenging, with much more to learn.
Gold coin acquisitions figure less than they used to, and with coins of much less individual value, the proof of provenance is nowhere near as important, therefore less paper records.
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Pillar of the Community
Australia
4411 Posts |
Depending on how you sell the coin I cant think of how the ATO could get you for that. Unless you're selling through a auction house I thought most sales would be fairly anonymous.
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Pillar of the Community
Australia
841 Posts |
My thoughts on this matter are, as soon as ANY money goes into ANY type of banking institution BIG BROTHER knows..unless you have fake ID and accounts. Thanks to the deal the unions made with the banks and gov.
Only way I know of avoiding anything like that/tax man is "cash money", and then you usually get a little less for it because it's more of a private sale 'cause they might not want a record either.
Why do you thing we got the GST..to get rid of "cash in the hand". For some unknown reason the gov needs to know everything, how much you have, where it is and even where your spending it. Why do you think they made it so basically every workers pay goes into a bank then you NEED a card so then they know with even more detail what, when and where your buying.
Remeber the gov is very sly. I should know, I've worked for all three, State, fed and local, LOL
Rant over thank you
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Pillar of the Community
Australia
841 Posts |
PS I had thought about ebay and things a bit after being put off medically unfit so I'm now on a DSP and rehab suggest making a hobby into money but they forget all these little traps or just neglect to tell you or like most gov things..they just have no idea. I didn't know until recent that when you go over X amount of sales the gov automatically make you a business. I know of a bloke that has just shut his ebay account as he got a tax bill as all his small sales add up but when it costs you to advertise and other expenses you don't actually make all the money they say you do. It's all a load of bull..if your only making say 30 cents from a sale the gov doesn't look at that they just see the final figure in your account and don't take all these little things into account. |
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Valued Member
Australia
312 Posts |
No ideas. But I think that as long as you go for "Cash Only", it won't have problems.
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Pillar of the Community
Australia
841 Posts |
The only problem I see there is how do you get your money if your not in the same area..well the only way I could think of is a "cash money order" where you have no name but then you run the risk if someone else finds it it's theirs..this is very hard now the gov is slowly filling the cracks
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Bedrock of the Community
Australia
21786 Posts |
Cash in hand is the ONLY way I have ever paid for anything except my mortgage which was paid off 21 years ago.
How am I able to achieve this? For example, all of my utility bills are paid in cash at the Post Office. If I travel overseas, I get a debit card, and cancel it at the end of the trip. That means I have to budget for the trip, and prepay as much as possible, before starting out.
For the 35 years, I have done a weekly and a yearly budget. After I run out of cash, I simply don't pay until it is allowed for in the following budget period. Part of my financial lifestyle. Never had the slightest pressure to change.
I clearly recognise that a credit card can be a very useful business tool, so long as it is active on company accounts only, and clearly separated from your personal finances.
With this sort of structure, there should never be any tax implications on coin collecting, when taken in association with other points made in other posts before this one.
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New Member
40 Posts |
I run a coin grading business and sell coins to the public and I do have to pay taxes. 99.9% of coin collectors are safe from paying capital gains on coins because it is to hard for the government to control it. For example, you buy a coin or banknote in high grade and drop or tear it, it would be worth considerably less then you paid for it. Most people these days trade on ebay but be careful if you are a seller! Most people don't realise that if you sell more than $19999.99 in a financial year, ebay MUST notify the ATO. |
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Pillar of the Community
Australia
841 Posts |
Thanks apcgs. I didn't know if it was the amout of sales you do or a $ value but I knew there's some little trick there. There's more to most things than meet the eye..nothing is as it appears ;)
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Replies: 10 / Views: 2,913 |
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Posted 11/28/2011 08:58 am
