Question "How Would Define Who Is A Coin Dealer ? "

Very interesting question Pacific...

Here's a couple of thoughts-

Perhaps it would be best to add a third category, vest pocket dealer/hobbyist dealer

I think a good amount of coin dealers would actually fall into that category, especially the guys that do local shows

I would think the three main criteria for someone who would fall into the coin dealer category would be these questions:

1. Is the entity legally incorporated to do business in their jurisdiction
2. Is this entity primarily involved in the sales of coins (as opposed to stamps, antiques, trinkets, junk)
3. Does the proprietor earn the majority of his/her income through the sales of coins

I think without all 3 criteria fulfilled, a reasonable case could be made that a seller is not a 'coin dealer'. However, I think that if, say, 2 of the three are met, the seller would more than likely at least fall under a 'vest pocket' dealer category


Shoot, depending on how you define coin dealer, there may well be dozens active right here on this forum!

This is another one that is going to have a wide variety of opinions.

So you sell coins. Is this because they were replaced with upgrades, are duplicates, or otherwise no longer needed to satisfy your collecting goal? If so, are you using the money to fund those upgrades or fill those holes? If the goal is using this money to build your collection, I would not call you a dealer.

Anyone not holding coin for own collection and quickly selling it = dealer.

Yup even all those ebay flippers are coin dealers. They have a business. They are making a profit/loss whether they sell one or a thousand coins. Matters not that they don't pay taxes. They are dealing in coins, ergo they are coin dealers. Anyone can choose to call themselves a coin dealer, or not. There are no prerequisites.

I think there's two issues here:

1) What's the definition of a dealer

2) When is someone supposed to pay taxes..


I think the definition of a dealer has to do with "intent" if anyone is purchasing coins with the intent of selling at some point in time for profit .. that is someone dealing in coins.

With respect to taxes (and personally I do have some issues with how I read the tax law at this point which I know will be a point of contention with you Pacific) ... but if I have a collection and sell the entire collection unless I can prove that with recipts I incurred a loss.. any value GAINED is taxable.

The problem I have with that is as follows:
If I bought the coin from a "dealer" I have already or should have already paid tax.
If I inherited the coin collection I would've paid some for of tax
Any auction site I will have already paid tax...

So you pay tax on the coin as a good or service and then once again upon the sale as capital gains...
(I just don't like how the same item continually gets taxed at every point of sale)


You are correct though I would imagine that there are many dealers with a whole lot less scruples than you buying and selling coins and never paying their fair share of taxes.. and as the law currently stands that would be incorrect and illegal.

My admiration level for you just grew. Hope it takes at least six or ten beers to all sell. It'd be a hoot to get drunk enough to start bidding on your own stuff.

While not a legal definition by any means, I've always felt that a dealer buys coins to sell for money, and a collector sells coins for money to buy more coins. And I can't wait for the tax man to knock on the door. I can show him how much he owes me.

I've asked dealers at coin shows how they became a dealer. Many different replies though. Some say they are not, just getting rid of STUFF they don't want. Some say they needed extra cash so thought they would give this a try. But does that make them a coin dealer? Some sell coins to make a living so is that a dealer. I've never sold a coin so guess I'm not a dealer. Selling almost anything could make you a dealer but I wonder if you sell only once or twice, are you a dealer. It is a good question and could have a lot of different possible explanations.