Monsterman: Look under Code 1031.......... Like kind exchange.
It reads in part.........."No gain or loss is recognized upon the exchange of property held for productiive use in a trade or business OR for investment if tghe property received received is of a like kind and is held either for productive use in a business or for investment. This non recognition rule does NOT apply to stock in trade or other property held primarily for sale, stocks, bonds, notes, certificates of trust, beneficial interests. partnership interests, securities, or evidences of indebtednedd or interest (Code Sec. 1031(a)(2); Reg. &1.1.1031(a)-1. It does cover trade-in allownaces." Obvious exceptions are that you cannot do this with related persons, nor if you are a dealer as the coins are "held for sale." IRS form 8824 (like-Kind Exchanges) is used to report the like-kind exchange.
For example......I trade a circulated set of buffalo nickels I found years ago at a cost of $100 and now worth $10,000 towards 3 1936 proof sets and no cash exchanges hands........no recognized gain required less technically the amount of "cash received" which is the face value of the coins in the proof sets which is LESS than in the circulated buffalo set and then again no tax to pay at this time.
Businesses who trade a automobile or truck with no cost basis left after depreciation may trade in the auto or truck with no recognition of gain and reduces the tax basis in the new auto/truck by the amount of deferred gain.
Same thing with commercial real estate which is seen quite commonly.
In fact, you....... "can even qualify for the like-kind exchange treatment even if the replacement property is received AFTER the relinquished property has been transferred by the taxpayer, provided that specific identification and receipt requirements are satisfied. This type of transaction has become known as a Starker exchange........." (Code Sec. 1031(a)(3): Reg &1.1031(k)-1)
Every fellow CPA I know has heard of the "Starker exchange." It is famous in the lores of U.S. taxation.
There is much more to read but it is available in every public librarry or on the internet.
oh.... i`ve used the regs you posted...........i was tongue in cheeked.........the trouble is for me is really simple...........rarely and next to never do i ever find a moose coin that there isnt a line behind me as long as the ones to the urnals at half time
that said i rarely have the chance to say "great coin ......i`ll buy it if youll take mine in trade..........this is true for 2 reasons....one.....usually my x-coins are spoken for in advance of my selling it ....the other is trades sometimes make dealers lower you on the "pecking order"..and then id no longer have my posyion of "first shot".....and thats something i cant do...... ttyl gregg
my goal is to find the monsters and i go where they are but i sometimes miss some.... so if you have any and want to sell IM THE BUYER FOR THEM!!!
out of rockets ...out of bullets...switching to harsh language
monsterman: What are you doing at the urinals at halftime? You are supposed to go in the middle of the 2nd quarter?
Same thing with coins! Heck you try to do these things at halftime? When the world has gone amok and you are ready to unload?????? If the other party can't find what you really want then no deal!
Why would I want to give up what I have anyway? If it was so good when I bought it why is it no longer what I want?
This aspect of collecting baffles me. Buy and selling and upgrading and all.....
Comments
It reads in part.........."No gain or loss is recognized upon the exchange of property held for productiive use in a trade or business OR for investment if tghe property received received is of a like kind and is held either for productive use in a business or for investment. This non recognition rule does NOT apply to stock in trade or other property held primarily for sale, stocks, bonds, notes, certificates of trust, beneficial interests. partnership interests, securities, or evidences of indebtednedd or interest (Code Sec. 1031(a)(2); Reg. &1.1.1031(a)-1. It does cover trade-in allownaces."
Obvious exceptions are that you cannot do this with related persons, nor if you are a dealer as the coins are "held for sale."
IRS form 8824 (like-Kind Exchanges) is used to report the like-kind exchange.
For example......I trade a circulated set of buffalo nickels I found years ago at a cost of $100 and now worth $10,000 towards 3 1936 proof sets and no cash exchanges hands........no recognized gain required less technically the amount of "cash received" which is the face value of the coins in the proof sets which is LESS than in the circulated buffalo set and then again no tax to pay at this time.
Businesses who trade a automobile or truck with no cost basis left after depreciation may trade in the auto or truck with no recognition of gain and reduces the tax basis in the new auto/truck by the amount of deferred gain.
Same thing with commercial real estate which is seen quite commonly.
In fact, you....... "can even qualify for the like-kind exchange treatment even if the replacement property is received AFTER the relinquished property has been transferred by the taxpayer, provided that specific identification and receipt requirements are satisfied. This type of transaction has become known as a Starker exchange........." (Code Sec. 1031(a)(3): Reg &1.1031(k)-1)
Every fellow CPA I know has heard of the "Starker exchange." It is famous in the lores of U.S. taxation.
There is much more to read but it is available in every public librarry or on the internet.
oh.... i`ve used the regs you posted...........i was tongue in cheeked.........the trouble is for me is really simple...........rarely and next to never do i ever find a moose coin that there isnt a line behind me as long as the ones to the urnals at half time
that said i rarely have the chance to say "great coin ......i`ll buy it if youll take mine in trade..........this is true for 2 reasons....one.....usually my x-coins are spoken for in advance of my selling it ....the other is trades sometimes make dealers lower you on the "pecking order"..and then id no longer have my posyion of "first shot".....and thats something i cant do......
ttyl
gregg
out of rockets ...out of bullets...switching to harsh language
Same thing with coins! Heck you try to do these things at halftime? When the world has gone amok and you are ready to unload?????? If the other party can't find what you really want then no deal!
Why would I want to give up what I have anyway? If it was so good when I bought it why is it no longer what I want?
This aspect of collecting baffles me. Buy and selling and upgrading and all.....
I am a buy and hold kind of guy.
But perhaps a new thread is needed?
All with a smile on my face.
But "ORV?" ,,,,,,,,,oh geez.