Cali sales tax limit moving from $1500 to $2000
Mr_Spud
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FYI - I just read this and got this link on the MyCollect site https://coinweek.com/california-resolves-coin-bullion-sales-tax-issue-with-legislation/
It says starting in August that dealers in California will have to collect sales tax if under $2000 instead of current $1500
Mr_Spud
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I wonder how much it really matters. Does anyone here know how much CA collected in sales tax on coins and bullion last year?
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California raised it's tax exemption from $1,500 to $2,000 in January 2023.
California Department of Tax and Fee Administration
https://www.cdtfa.ca.gov/lawguides/vol1/sutr/1599.html
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It technically started January 1st, 2023 (but there was some confusion as the article points out). Not living in California, I was surprised when my only sale over 1,500 (but under 2k) on eBay to California still had sales tax. The buyer was surprised too. I later found out here in a thread that the law had changed and eBay is using the 2,000 threshold.
I just found out last week that heritage is also using the $2,000 limit.
In 2021, I bought one collectible gold coin for $1450 and paid sales tax. The same year, I paid sales tax on two gold coins (bullion) that cost more than $1,500 but less than $2,000. In 2022, I bought one Krugerrand gold coin for $1905 and paid no sales tax.
Just another reminder not to buy any coins from California.
That's absolutely irrelevant. The tax rules are based on where you live not on where the purchase is shipped from.
Because it's the LAW...
A more accurate way to put is don’t make any under $2,000 coin purchases in California.
The rest will follow if they haven't already
I have to wonder how much Cali business it’s cost me.
Taxes, one of the absolute facts of life. Cheers, RickO
True, but taxes are more onerous in some areas than other areas. In Florida, there's no state income tax and no sales tax on coins or on bullion over $500.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
In 2022 when the sales tax exemption was only $1500 I won a $1300 coin on GC. To avoid paying sales tax I made sure I was going to win a $250 bullion coin at the end of the auction.
(JK, I don't mind the eagles but CCR IS better
)
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Good strategy. What is sales tax these days in CA?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
I have done this many times, it's one of my favorite strategies. I found out the exemption amount increased the hard way when I did this at HA recently
@PerryHall 7.75%
Yikes.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Some states are cheaper to live in than others.
You get what you pay for.
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Sales tax varies from county to county in California.
LA County 10.25%. Orange County 7.25%. San Diego County 7.75%.
How long before California taxes you for breathing?
Paper money eventually returns to its intrinsic value. Zero. Voltaire. Ebay coinbowlllc
California taxes us to provide services and infrastructure for the 5th largest economy in the world and to help protect some of the most beautiful scenic land and ecosystems on earth.
100% agree.
Also, due to prop 13, passed in 1979, property taxes can barely rise on a year over year basis. That revenue needs to be replaced somehow. I haven't done an in depth analysis but I believe that, as a percentage of total taxes collected, CA likely has nearly the lowest property taxes in the nation.
We just bought my wife's mom's house in California and my wife is trying to get her mom's taxes on the property. We submitted the forms and we will see.
I'm not going to do data entry for 50 states and DC to get the exact ranking but CA is solidly below average:
There was a spreadsheet for easy download.
As a percentage of revenue, CA property taxes are 19th lowest. As a percentage of personal income, CA property taxes are 21st lowest. On a dollars per capita basis, CA is below the national average including many "low tax states" like Texas, Wyoming, and Alaska.
Additionally, seniors (55+) can move to any different county within the state and maintain their low property tax basis provided the new house is not more expensive. So, for example, a college professor at Stanford who bought a house in Palo Alto in the 60s for $50k which is currently valued at $3mm would be paying approx $1000/yr in property taxes, can sell that house and move to Sacramento, buy a $2mm house, and still pay $1k/yr in prop taxes! Not as bad as people think...
That's great.. Except sales tax is highly regressive and a poor person doesn't have a $3 million house to offset it. [Not that NY isn't worse.]
100% agree. And if you knew about the implications of the property tax rules on corporate/trust owned properties it might make you queasy. (Unless you are hardcore anti-tax in which case you might cheer) If it weren't for our property tax rules we would have lower income and sales tax. However, it's essentially politically impossible to retract Prop 13 to have a more traditional arrangement.
But given that it is there, I just want to be fair because my state gets a lot of knocks for high tax rates which are not always representative of the real situation.
California bashing is a sport.
The truth does not matter.
Totally wrong. The tax is based on the BUYER's location not the seller.
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I really don’t know why I’m still living here.
But the IRS/Congress never raises the $10k Form 8300 filing limit, inflation be damned.
One month ago, my company asked me to move me to California. My annual overall tax burden once you include property taxes, sales tax and income tax would have been an increase of ~6% of my income paid annually in taxes, to say nothing of the massive increase in housing cost.
I will happily pay $2000 more in property tax in Texas to save $16,000 in California income taxes.
Which is why wages are usually higher...I would hope they would give you a raise, otherwise, assuming you like living in TX, of course you would turn them down.
For comparison's sake, because not every one is a high earner like you, the federal minimum wage is $7.25 vs. $15.50 in CA. Someone earning minimum wage in CA (and actually much higher than that) owes $0 in state income taxes. Years ago when I was on salary I routinely made 50% more than people located in lower cost of living areas with my same company in the exact same position.
You're right, i simply compared what the CA state taxes would be on a texas salary in california without accounting for the potential larger salary in that job market.
So let's run the numbers.
In order for me to live in California with the same net amount of money in my pocket after you account for the increased cost of living (mainly housing) as well as california state taxes, my company would have to pay me an extra 59% to reach break even.
The net effect would be that I would be no better off financially, but i would end up paying DOUBLE the total state and federal taxes i currently pay, along with spending a lot more money for the same lifestyle.
While there are many nice things about California, its fairly clear to me that people are paying for the 'privilege' of living there.
1200 + 900 return the 900.
I don’t think it’s going to happen. I’m not a CPA but I believe only if the property is inherited does the tax basis remain the same. If you buy property your tax basis is the purchase price regardless of who you buy from.
Without prop 13 nobody could afford to live in California.
That's how it was originally pitched 45 years ago when California had the best public services and infrastructure in the nation and insane inflation (approx double our recent peak level of inflation ) increased real property values at a rapid pace. But there are unintended consequences to everything. Certainly in some of the high dollar areas moderate income people would be forced to move and that's not an outcome that anybody wants.
However, many of the other taxes would likely be lower. And it's impossible to know but I would theorize that home prices would not necessarily increase as rapidly if the cost of ownership continued to increase just as rapidly.
I'm going to open a can of worms here, I understand that, but I will also say that the taxpayers of California are subsidizing a huge amount of corporations, partnerships, irrevocable trusts, and other business entities which don't have a majority change of ownership when the controlling party dies and so their tax basis doesn't get stepped up essentially ever. The best example is LA country club, the recent host of the US Open.
I don't know @ctf_error_coins situation or age but inheritance would not have anything to do with it unless a trust owned the property and that same trust continues to own the property. If there is a change in majority ownership regardless of whether it's a gift, inheritance, or purchase that resets the property tax basis. Now maybe he is over 55 and can transfer in the cost basis from his prior house, or there's some other program of which I'm unaware, but barring that I agree that it's unlikely he'll get to maintain his mother-in-law's tax basis.
Whether the property is inherited or not doesn't matter unless it was previously owned by a trust and the trust is going to continue to own the property.
There may be some programs or wrinkles that I'm unaware of but generally if there's a majority change in ownership whether due to inheritance, gift, or purchase then there will be a reassessment and the tax basis will step up to current market value.
I hope I'm wrong but I agree that it's unlikely that @ctf_error_coins will be able to maintain his mother-in-law's tax basis.
@lermish @skier07 is correct. A direct descendent keeps the tax basis of the original purchase. Only if sold does it go to the purchase price, or if it's transferred in some other way. I know this from personal experience (my MIL passed away and my SIL is paying the same rate plus prop 19 allowances for increases.
Prop 19 is not causing the problems with CA infrastructure. It's the politicians with their hands in the cookie jar that are causing the problems and not using existing funds already assigned to infrastructure from taxes. CA raised gas taxes at least 3 times before I finally gave up and left. I bought way more house in Arizona than I could have ever afforded in CA. Not just property taxes alone, but the rest of the cost of living is among the highest as well. Gas food utilities... Business taxes etc. It all adds up. And it was just too much. We would have been renting for the rest of our lives.
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I do. Three hour drive for me....
Both two hours away from me.
That is about the only thing CA has going for it. It definitely has variety and beauty, I'll give it that. We do miss that aspect!
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Not so, I am required to pay California tax on coins I buy when I am in California even though I live in Arizona.
Not shiped buy bought in person... LIKE I said, > > Just another reminder not to buy any coins from California.
No, a reminder to not buy any coins valued at less than $2k when you're IN California. And even then I'm reasonably confident that most shops would allow you to pay then and ship to you in Arizona to avoid the sales tax. Nevada actually has a much worse sales tax for coins and when I purchased a coin from Northern Nevada in Carson City I paid there and they shipped it to me in California so I could take advantage of the sales tax exclusion.
Not entirely accurate. A single person making $15.50 would owe state income taxes, and if they did not have heath insurance they would be subject to shared responsibility payment.
Moving out of Ca to NV 7 years ago changed my life. At the time the cost of living and lower taxes allowed me to buy a home with a mortgage that was several hundred less than the house I was renting in CA. The exodus from Ca and other states to NV. Have changed that some.
And as far as scenery. Couple hours away
Couple minutes away
Little closer
And still just a few hours from the ocean
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