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 Replies: 9 / Views: 1,391 |
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Valued Member
United States
311 Posts |
In CA there is sales tax on precious metal purchases less than $2000. Currently 1 oz gold coin is about $1950. What is a common low premium coin that you can add to your purchase to get just over the $2000 minimum?
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Pillar of the Community
United States
1758 Posts |
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Pillar of the Community
United States
6381 Posts |
The tax-exempt minimum recently went up from $1500 to $2000. Not good news for the typical California collector.
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Pillar of the Community
United States
3342 Posts |
Add a pre 1933 double eagle to your collection. You'll pay a higher premium but you'll get a real coin.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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Moderator
 United States
54280 Posts |
Seems simple, anything costing over $50. What am I missing?
Show your financial support of the Coin Community Family (click here)See my topic on Mexican Numismatic Medals (click here) |
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Pillar of the Community
United States
3342 Posts |
If you've ever bought coins or PM's in California, you've paid the 7.25% sales tax plus the local option, for purchases under $2000. The state simply takes your money if you make small purchases. I get around it by buying from out of state and having it shipped to me. The same is true in Nevada. Even if you've paid from out of state, you can't physically pick up the coin in Nevada without having to pay the sales tax on it. I browse in Carson City but don't buy anything there.
From California Regulation 1599,
"For sales occurring on or after January 1, 2023, a sale in bulk occurs if the total market value of the monetized bullion, nonmonetized gold or silver bullion, and numismatic coins sold in a single transaction is $2,000 or more"
The aggregated cost of the sale has to exceed $2000 to avoid the sales tax, so combine whatever is necessary of collector coins or bullion.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
10/06/2023 09:41 am
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Pillar of the Community
 United States
6460 Posts |
When it says "numismatic coins", does that apply to all classic silver coinage?
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Pillar of the Community
United States
3342 Posts |
The seller collects the sales tax so they would know. I'd guess that a roll of Buffalo nickels would qualify, and certainly anything silver pre 1964. "Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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Pillar of the Community
United States
2049 Posts |
Quote:
Seems simple, anything costing over $50. What am I missing? I wondered the same thing. Seems fairly straightforward to just add more PMs that get the OP over the threshold unless there's more to it. |
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Pillar of the Community
United States
6381 Posts |
The tax exemption applies for any numismatic purchases, not just gold and silver. If an Indian cent purchase add up to $2000 in a single transaction it qualifies. |
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Replies: 9 / Views: 1,391 |
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Posted 10/05/2023 9:59 pm
