Tax question: I know this was answered last year, but...

MastaHanky

...there's a section where you can deduct hobby expenses.

I don't know the in's and out's of that section. Can your typical coin collector hobbyest use that at all? I'm assuming that section is for hobby expenses that are being used as an investment?

MastaHanky

Anybody on the day crew have something to say about this?

relayer

Yes, the government wants to support your hobby, so you can deduct all hobby related expenses - even your coin purchases.

oreville

Yes...post a link to the section you are talking about so that I may comment.

In general, only expenses attributable to the acquisition of coins held for investment can be added to the cost basis of the coins for determining gain or loss upon sale.

I have yet to see meet or know any coin collector(s) who should not treat their coin collecting hobby as an investment (at the very least) for income tax purposes unless they strictly cull coins and buy them only for gifts or to experiment with them, etc.

semicycler

My understanding was you can only deduct hobby expenses against hobby gains. You can't use that huge loss on the sale of that pop-1 modern when it became a pop-10 to reduce your income - you can only apply that loss against the gain from selling that PR70DCAM you made.

geb209

Semicycler is correct. You can only deduct hobby losses to the extent of hobby gains.