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 Replies: 17 / Views: 4,619 |
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Valued Member
United States
307 Posts |
When does a coin shop have to report a buyer to the IRS? Any truth to the amount of $10,000.00?
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Pillar of the Community
United States
3077 Posts |
more like $600 if you sell to them not too sure about buying
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Moderator
 United States
23522 Posts |
The $600 provision does not kick in until Jan. 1, 2012. At this point, any business conducting $600 worth of trade with someone will have to issue them a 1099 covering the transaction. H.R. 5141, aimed at repealing this provision, is currently oozing its' way through Congress; no idea what sort of support it has. It had 80 co-sponsors in the last Congress but the new year brings a new group.
As of today, any single $10k transaction (or multiple payments exceeding $10k related to the same transaction) must be reported. This is an unrelated requirement.
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Pillar of the Community
 United States
2448 Posts |
I thought we were still fighting that battle. If you haven't written you representative, do it after the new congress takes over.
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Valued Member
United States
487 Posts |
Even the Pres. has said this is a bad thing and is behind getting it removed.
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Pillar of the Community
United States
3278 Posts |
Fill out a form for a measly $600 transaction, you gotta be kidding me.
Too much government!
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Valued Member
 United States
307 Posts |
Thanks for the responses. The reason for the question, I was being asked to leave my social security number when leaving coins on consignment. We were told that any amount over face value would have to be reported as income. Is this crazy or what?
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Valued Member
United States
426 Posts |
That's crazy coin chaser! I can't believe they want your SS. I would decline and try to find another way.
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Bedrock of the Community
United States
17884 Posts |
Quote:
Fill out a form for a measly $600 transaction, you gotta be kidding me. Worse than that. Under the new law the dealer has to keep track of every transaction where they buy something and then report them if the cumulative total for the year exceeds $600. So if you sell a dealer $100 worth of material six times during the year the dealer has to keep track of all that and then report it. And of course since they don't know whether your sales to them might go over $600 they will have to get your information and SS# for every sale you make to them. |
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Valued Member
United States
497 Posts |
I'm sorry. New to this but what exactly is going on?
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Valued Member
United States
374 Posts |
so they want you to claim any sale over $600.00 on your income tax return? Thats the amount at the horse track its called a signer. Then you just have to prove you lost more than you won. Thats why people save there losing tickets.
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Valued Member
United States
255 Posts |
Government is starting to get outrageous. They espouse small business in their speeches then do things to effectively kill it. This kind of regulation hampers job growth and hurts our overall economy. Just so that the IRS can squeeze a few more dollars out of its citizenry. What a shame.
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Valued Member
United States
307 Posts |
I totally agree that GOVERNMENT is getting larger than necessary. This increases the cost of its operation and the need to generate funds. (IRS) This will not go away by itself we need prepare to deal with the fact that if our collection increases in value we will be liable for the tax on that amount. The most important records we need to keep is the verifiable cost of our collection. It only gets more involved. ebay sellers BEWARE. ebay buyers keep records. We are no longer Hobby Collectors we are a small business. HOW DID THIS HAPPEN? |
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Bedrock of the Community
United States
17884 Posts |
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We are no longer Hobby Collectors we are a small business. Unless you try and claim a net loss, then you are a hobby and losses are not deductible. |
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Valued Member
United States
98 Posts |
So does this mean that if I sell a bag of silver halves at a coin show next weekend and I get $1000 for it, I have to report that as income? Or if I offer coins for sale on Craigslist?
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Valued Member
United States
307 Posts |
Correct there are no losses to Hobby collectors. The tax laws ( I am sure. HO HO HO)were meant to be fair when put into law but I see it only as a win/win for the IRS. The coins shops I deal with said that it has been in the IRS Code for years. But with the state sales tax and other government agencies having access to there records it makes them keep accurate records. Another point to be made is the high value of GOLD and Silver caused even fill in Morgans worth over twenty dollars melt. At one shop He said his volume remained the same but his sales tripled. The tax people notice this. I don't know the answer but it seems that we are being forced to buy and sell knowing that Big Daddy is watching. Got to get a cup of coffee to read the forum later. Having Fun Yet?
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Replies: 17 / Views: 4,619 |
Posted 12/28/2010 12:05 pm
