Investor or Collector?

cameron12x

How does the IRS determine whether a person collected coins as a hobby or purchased them as an investment?

What are the rules? TIA.

Outhaul

I just say that I collect classic commems. They just shake their heads and walk away.

jmlanzaf

@cameron12x said:
How does the IRS determine whether a person collected coins as a hobby or purchased them as an investment?

What are the rules? TIA.

https://www.irs.gov/newsroom/hobby-or-business-irs-offers-tips-to-decide

jmlanzaf

If you never declare a profit and pay the corresponding capital gains tax, you'll have a hard time convincing the IRS that it is an investment.

Baley

Pay 28% minus expenses on your profits and sleep well every night.

BStrauss3

U forgot hoarder

rte592

@Baley said:
Pay 28% minus expenses on your profits and sleep well every night.

Repeat after me...
Nobody makes a profit on coins, silver, gold, etc.

jmlanzaf

@rte592 said:

@Baley said:
Pay 28% minus expenses on your profits and sleep well every night.

Repeat after me...
Nobody makes a profit on coins, silver, gold, etc.

If true, hobby it is!

ricko

Not even up for debate in my case....Hobby all the way.... no sales, only expenses.... Cheers, RickO

cagcrisp

It's not hard for the IRS to determine whether it's a hobby or an investment. IF you're even asking the question, you Probably not an investor...