IRS Tax Consequence On Bag~~~box Searching?

Many years ago I did CRH'ing in Australia, and I simply never bothered about the tax implications.
Of the coins I extracted, some of them I sold, and some of them I kept.

If I did CRH'ing again, I would still simply never give a toss about the tax implications.
To do CRH'ing again I would be getting coins from the bank, paid for with already tax paid dollars. If I sold any coins taken from circulation, I would consider it the same as selling second hand goods. Such would have originally been bought in the first place with already tax paid dollars.

Having owned various companies over the past 30 yrs, you become well versed in both the tax laws and their intent. As ffad said above, their only intent is to insure that people pay their fair share of taxes on any money made or any capital gains made on purchases or sales.

If you take out money from the bank in the form of Ikes, that is just money that you have already deposited and paid taxes on. If one of those dollars turns out to be silver, you have just have just made $5.22 - $1.00 investment. You owe tax on that $4.22 capital gain in melt value. The IRS will also tax you on a reasonable assessment of added value and/or profit from sale.

It is all a matter of what you paid, what it is worth and what you sell it for. The bottom line I learned long ago, is collecting, as in business, record keeping is everything. As my accountant always says, "The law says you have to pay your fair share, good record keeping insures you don't pay a penny more."

After many run ins with the IRS, I am the last one to defend them. But do you really expect the IRS to believe everyone who tells them that the $10,000 in cash that they are depositing is them same $10,000 in cash that they withdrew last month, with no documentation at all ? No offense meant to your friend, because lack of documentation is his own fault, but it is a good lesson to all numismatists.

Like my accounting firm, (Dewey, Cheatum and Howe), says " The IRS functions on documentation, not the word of the innocent" Always keep track, with receipts, of when and how much you paid for something and when and how much you sold or traded it for. Or else you run the risk of things like this happening.

I rarely deposit the amounts I take back to the coin counter, however my CU does write my account number on the coin counter receipt as I get paid for what I dumped. This gives me the heebeegeebeees.

Get rid of the 16th Amendment and we won't have to worry about the IRS considering deposited funds to be "income" to be taxed.

Until the collectible coin has been sold, it is worth face value and not a penny more. I'm all for doing away with the IRS as we all know and love it, but I'd they decide to audit your bank transactions, they'll find nothing as long as there's nothing to find.

Roll hunting certainly isn't illegal, and neither is holding a coin collection--even a very large one. You might be in trouble if you sell a few $1,000+ error coins for cash without reporting it, but there would of course be difficulties with proving said transaction ever took place.

Suspicious Activity Reporting kicks in if you deposit >$5000 from a single "source". It is automatic if you deposit it in one day, but if you deposit checks from the same person, with the same account numbers especially, several months apart that totals over 5000 USD, they will file a SAR. Same goes if you deposit cash, even months apart, if it crosses the 5000 USD barrier, the bank reports it.

The IRS will not launch a full scale investigation into your lives for one or two deposits of even over 10.000 USD, spread a year or two apart from one another. People do get too paranoid. And, even if they do come to question you, so long as you keep documentation to show where you got the funds, you're golden.

As far as CRH goes, if you redeposit the cash when you make a dump, then over time if will be reported. If you don't deposit, then it shouldn't be. My bank does something similar to carloscoria, they verify my identity and make a note of my account should any roll be off, so they can take the money out of my account instead of having to cover the loss themselves. It does make me nervous taking rolls in knowing that, since when I go in with, say $500 in banknotes, and the tellers count three 50's and are more than ready to hand me five 100's and one 50's, when I've only handed them two 50's(they counted $550); or when I head in with loose change and they're putting nickels in their quarter piles (and thusly counting nickels as quarters); or when it takes them 3-4 tries to determine that my bundle of $50 in ones actually contains $50, and not $49, or $51, or $48.



Only if you can prove it is, or if you can prove there's reason to believe that it is, i.e., you closed out a bank account and got $15.000 in cash, and then deposited $12.000 in another of your banks a month later. Although the time frame is odd (a month), you most likely would have no problem doing it since you did close out a bank account, rather than just withdrawing the cash.



Only if you're selling select things and in select quantities. If you walk into a shop and sell $500 face, the dealer doesn't report the sale, but if you sell $1000 face, then yes. There are others, i.e., I believe over 25 1oz gold coins needs reporting, but 24 doesn't. If you know the threshold, the IRS is none the wiser.