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If you consign a large collection do you pay tax on capital gains for the individual coin?

Do I pay tax on the individual coin that made money or do I consider the collection as one large investment and pay taxes according to how well the collection did? In other words my consignment overall lost money but I had some coins that actually did very well. Do I pay capital gains tax?

Comments

  • I would think that the losses would offset the capital gains and you could write it off that way. Check with a tax advisor to be sure.
    Paul Fillmore
    ANA LM5200
  • TrimeTrime Posts: 1,864 ✭✭✭
    Legacy is correct in his assumption however if the gain was in one year and the loss in a later year then this does not apply. The gain is taxable and the loss if unbalanced by new gain is elgible for a limited deduction and the residual can be carried over to future years. save all expenses as they are potential deductions against gains.
    Trime
  • RonyahskiRonyahski Posts: 3,116 ✭✭✭✭✭
    Technically, you have to allocate the sales proceeds according to relative fair market value for each coin, and apply tax basis (your cost) for each coin, to compute gain or loss for each coin. So, you have gain, and you have loss for each piece you sold.

    Forunately, you can offset losses up to the amount of gains during your tax year. Hope that helps.
    Some refer to overgraded slabs as Coffins. I like to think of them as Happy Coins.
  • I pay enough tax, if I report sales of coins, it will only be on the ones I lose money on! This is a good reason why you dont want to consign coins that you will make money on!image
    You can fool man but you can't fool God! He knows why you do what you do!
  • Besides, Im here in California, I need to save a few bucks to pay for my car registration that will triple next month! IM TIRED OF BEING DOUBLE TAXED!
    You can fool man but you can't fool God! He knows why you do what you do!

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