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Do the auction houses file 1099s with the IRS? UPDATE.....Answer from Heritage

GATGAT Posts: 3,146 ✭
in U.S. Coin Forum
I don't believe that they do, but someone is trying to tell me otherwise.

Just received this reply from Heritage.

"Thank you for your inquiry. We do not submit 1099's to the IRS for coins sold at auction.
I look forward to working with you again in the future. "

If you have any further questions please do not hesitate to contact me.

Thank You,
Andrea Voss
Client/Bidder Services

Heritage Galleries & Auctioneers
3500 Maple Avenue, 17th Floor
Dallas, TX 75219-3941
Toll Free: (800) 872-6467 Ext. 225
Local: (214) 252-4225
Fax: (214) 443-8425



USAF vet 1951-59

Comments

  • nwcsnwcs Posts: 13,386 ✭✭✭
    Do they have your SSN?
    Blog and Pics
  • BAJJERFANBAJJERFAN Posts: 31,211 ✭✭✭✭✭
    think that I would ask them BEFORE consigning!!
    theknowitalltroll;
  • michaelmichael Posts: 9,524 ✭✭✭
    no
  • michaelmichael Posts: 9,524 ✭✭✭
    but this will change within the next 5 years or so
  • K6AZK6AZ Posts: 9,295 ✭
    This is already changing. I inquired about consigning to a major auction house and they told me I would have to provide a SSN or a taxpayer ID number.
  • BAJJERFANBAJJERFAN Posts: 31,211 ✭✭✭✭✭
    Yet another reason NOT to consign to the large auction houses.
    theknowitalltroll;
  • PistareenPistareen Posts: 1,505 ✭✭✭
    While I can't tell you the policies of other auction houses, I've been a cataloguer for three different firms between 1995 and the present and none of the firms I have been affiliated with has ever issued a 1099.

    I've also been a consignor on occasion, and never had a 1099 issued.

    It is my understanding that it is up to the individual to keep proper cost basis information, receipts, etc. and do their own reporting to the IRS.

    Not to tell anyone they're wrong, but I'm guessing my actual experience in this may be more accurate than those who are making assumptions.
    John Kraljevich Americana
    Betts medals, colonial coins, US Mint medals, foreign coins found in early America, and other numismatic Americana
  • GATGAT Posts: 3,146 ✭
    I posed this question to Heritage via E-mail and it will take several days to receive an answer back.
    USAF vet 1951-59
  • JulianJulian Posts: 3,370 ✭✭✭
    <FONT style="BACKGROUND-COLOR: #c0c0c0">There is no requirement for any coin dealer or auction firm to issue 1099's, at this time.

    There are requirements for dealers to file a form with the IRS, if there is more than $10,000., in cash spent. If the transactions are done by non-bank checks (personal/corporate), there are no requirements.


    </FONT>
    PNG member, numismatic dealer since 1965. Operates a retail store, also has exhibited at over 1000 shows.
    I firmly believe in numismatics as the world's greatest hobby, but recognize that this is a luxury and without collectors, we can all spend/melt our collections/inventories.

    eBaystore
  • topstuftopstuf Posts: 14,803 ✭✭✭✭✭
  • lathmachlathmach Posts: 4,720 ✭
    I got a 1099 from Liberty Coins in Lansing Mich from the sale of a couple thousand dollars face in junk silver.image

    Ray
  • K6AZK6AZ Posts: 9,295 ✭


    << <i>I got a 1099 from Liberty Coins in Lansing Mich from the sale of a couple thousand dollars face in junk silver.image

    Ray >>



    It's a growing trend that has apparently reached at least one auction house. All I can say is that people better start getting used to reporting their coin sales, and keeping track of what they paid for the coins.
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>It's a growing trend that has apparently reached at least one auction house. All I can say is that people better start getting used to reporting their coin sales, and keeping track of what they paid for the coins. >>



    You are 100% correct! The recent ICTA 1099-B broker guidlines are law regarding bullion.

    We are the next group of folks targeted to "housebreak", so to speak. The IRS isn't going to let folks like us who often deal with cash go along our merry ways much longer. I regularly deal in bullion lots in excess of 10K and I have been reporting everything for the last few years. Remember, we also have expenses to offset at least a portion of those gains. We may even have net losses. Not everybody considers the expenses involved and they can add up.

    If it's not a hobby when you make a profit, then it's not a hobby when you take a loss either.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • VAMs4U2BuyHereVAMs4U2BuyHere Posts: 304


    << <i>
    If it's not a hobby when you make a profit, then it's not a hobby when you take a loss either. >>

    This is actually true. It is my understanding that the IRS only requires that the company turn a profit once every 3 years.
  • K6AZK6AZ Posts: 9,295 ✭
    Exactly. By time I added up the cost of the coins, eBay fees, postage and materials I had a net loss on schedule C. It's coming, and now is as good a time as any to get into the habit of keeping records for those that aren't.
  • GATGAT Posts: 3,146 ✭
    Having received other answers via PM, I find that TeleTrade doesn't issue 1099s, even for California residents, of which I am one. There is no request for SSN on their submission form.
    USAF vet 1951-59
  • BAJJERFANBAJJERFAN Posts: 31,211 ✭✭✭✭✭


    << <i>Not everybody considers the expenses involved and they can add up. >>



    I find it hard to believe that folks would ignore these costs like postage, eBay and PayPal fees, etc. Even tho many here are collectors when they buy a coin they don't seem like they care all that much if they get their $$$ back if they decide to sell in order to upgrade or take up an interest in another series. When you buy a coin on eBay and pay good $$$ plus $10 postage it just became harder to resell that same coin on eBay for a profit because now you have new listing and FV fees to add on plus the shipping that the new buyer will have to pay to get it from you to him.
    theknowitalltroll;
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>

    << <i>Not everybody considers the expenses involved and they can add up. >>



    I find it hard to believe that folks would ignore these costs like postage, eBay and PayPal fees, etc. Even tho many here are collectors when they buy a coin they don't seem like they care all that much if they get their $$$ back if they decide to sell in order to upgrade or take up an interest in another series. When you buy a coin on eBay and pay good $$$ plus $10 postage it just became harder to resell that same coin on eBay for a profit because now you have new listing and FV fees to add on plus the shipping that the new buyer will have to pay to get it from you to him. >>



    Oh there are plenty more expenses too. Milage to and from the post office, insurance on shipping, storage, bank boxes, moving costs, going to a show you may have toll roads, food, more milage, losses on coins that fail to make the grade if you are speculating, grading fees, office supplies, office space, phone bills, coin supplies, cameras, perhaps a computer set up just for your "hobby/business", internet connection fees, a % of interest on vehicle payments and insurance, etc.

    Of course the IRS figures your time is worth nothing but you may need help once in a while for various things as well. I was able to show a loss 3 years ago, a small profit 2 years ago and I had a larger profit last year. If you have someone advising you with your taxes that is also a deductable expense.

    A good tax attorney or accountant is worth every penny.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • BAJJERFANBAJJERFAN Posts: 31,211 ✭✭✭✭✭
    Are all of those extra costs associated more with a business than a hobbyist? I would think as a hobbyist one would dwell on costs that are easy to figure and document as you can only deduct vehicle costs as a percentage of the time it is actually in use in your hobby.
    theknowitalltroll;
  • GATGAT Posts: 3,146 ✭
    Update with reply from Heritage.
    USAF vet 1951-59
  • LongacreLongacre Posts: 16,717 ✭✭✭


    << <i>A good tax attorney or accountant is worth every penny. >>




    image
    Always took candy from strangers
    Didn't wanna get me no trade
    Never want to be like papa
    Working for the boss every night and day
    --"Happy", by the Rolling Stones (1972)

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