Do you have to claim all Ebay Coin Sales on your Taxes?

YaHa

Do you have to show all ebay sales on your year end Tax returns? I was told that if I was thinking of selling my coins I should do just that to protect me from any I.R.S. problems. Yaha

airplanenut

I do. Schedule C.

notwilight

No, congress passed a law exempting ebay from taxes because of the tremendous contribution it has made to the "community". --jerry

TheCaveTroll

<< <i>Do you have to show all ebay sales on your year end Tax returns? I was told that if I was thinking of selling my coins I should do just that to protect me from any I.R.S. problems. Yaha >>



You would do well to take tax advice from a professional and not a bunch of collectors on a message board.

CarlWohlforth

My coin sales are a part time business. I account for them, like Jermey does, on Schedule C.

Ronyahski

You don't have to report any taxable income to the IRS if you don't want to. It's only when they catch you is when you have a problem!

p8nt

I certainly report it. It's income.

Mercury

If I am a power seller who sells 10k a month, Yes, no doubt you have to report this.

However, if I am a collector who sells a handful of coins a year on eBay and may or may not make any money, does the still hold true?

CollectorBob

Worse yet, how do you figure out a cost basis for coins you inherited? I have no idea what theywere ever purchased for, does that mean I should start with a cost-basis of $0?

Dave99B

Get real.

Dave

Mercury

Consult a lawyer and all that stuff

But I think if you inherit something your cost basis is the market value at the time you take possession.

stman

Just don't forget to deduct your expenses you're entitled to. Like tape, tires, soles for your shoes, time spent waiting in line at PO etc.
Although some charge extra for this on shipping.. and deduct it as well. And if you're slick enough, perhaps you can pencil-whip the figures enough to grab a snack on the way to the PO. Hope this helps.


PS, don't forget to deduct the INK. Again, some charge for this on shipping as well.

Wolf359

<< <i>Do you have to show all ebay sales on your year end Tax returns? I was told that if I was thinking of selling my coins I should do just that to protect me from any I.R.S. problems. Yaha >>



Yes

droopyd

<< <i>However, if I am a collector who sells a handful of coins a year on eBay and may or may not make any money, does the still hold true? >>



As long as the proceeds from anything you sell are reinvested in your collection, you should be exempt as a hobbyist. Basically, buy more than you sell and don't sell stuff right after you buy it, and you should be OK.

sonoranmonsoon

<< <i>Just don't forget to deduct your expenses you're entitled to. Like tape, tires, soles for your shoes, time spent waiting in line at PO etc.
Although some charge extra for this on shipping.. and deduct it as well. And if you're slick enough, perhaps you can pencil-whip the figures enough to grab a snack on the way to the PO. Hope this helps.


PS, don't forget to deduct the INK. Again, some charge for this on shipping as well. >>



I did that when I ran it as a business. My understanding, as a non business collector only expenses that are directly associated with the cost or sale can be applied. Example: Shipping costs, ebay fees, etc, can be deducted. Milage, ink, tires etc, cannot. Now I report the coin gains and losses on my schedule C, just like stocks and bonds.

Note: I am not an attorney or accountant, just a layman that struggles with all the forms like everyone else in April.

MarkInDavis

I believe inherited coins start with a basis of the fair market value at the time you inherit them. The estate should have paid estate tax on them (if any was due) when you inherited them.

Of course I am not a tax professional.

BAJJERFAN

<< <i>Worse yet, how do you figure out a cost basis for coins you inherited? I have no idea what theywere ever purchased for, does that mean I should start with a cost-basis of $0? >>



If you can't document your basis, the IRS will likely assume it is $0 IF there is an audit..

BAJJERFAN

<< <i>

<< <i>However, if I am a collector who sells a handful of coins a year on eBay and may or may not make any money, does the still hold true? >>



As long as the proceeds from anything you sell are reinvested in your collection, you should be exempt as a hobbyist. Basically, buy more than you sell and don't sell stuff right after you buy it, and you should be OK. >>



I don't think the reinvestment BS will cut it with the IRS.

sweetwilliet

<< Worse yet, how do you figure out a cost basis for coins you inherited? I have no idea what theywere ever purchased for, does that mean I should start with a cost-basis of $0? >>



If you can't document your basis, the IRS will likely assume it is $0 IF there is an audit..

Almost, if you can't prove your cost basis, I believe it will be the face value of the coin, ie... $1 for a morgan.

ziggy29

<< <i>As long as the proceeds from anything you sell are reinvested in your collection, you should be exempt as a hobbyist. Basically, buy more than you sell and don't sell stuff right after you buy it, and you should be OK. >>

I've never heard of any "reinvestment" loophole as a hobbyist.

However, it *is* true that as a hobbyist, if you sell coins at a loss (or break-even), there's nothing to report since as a hobbyist your losses are not deductible.

RYK

Now I report the coin gains and losses on my schedule C, just like stocks and bonds.

I think you mean schedule D. I report all net proceeds on schedule D as capital gains and losses.

There is a lot of interesting advice here.

BAJJERFAN

<< <i>

<< <i>As long as the proceeds from anything you sell are reinvested in your collection, you should be exempt as a hobbyist. Basically, buy more than you sell and don't sell stuff right after you buy it, and you should be OK. >>

I've never heard of any "reinvestment" loophole as a hobbyist.

However, it *is* true that as a hobbyist, if you sell coins at a loss (or break-even), there's nothing to report since as a hobbyist your losses are not deductible. >>



True and I think that you would report NET gains so if you sell one coin at a $10 loss and another at a $40 profit your reportable gain will be $30.

ziggy29

<< <i>Now I report the coin gains and losses on my schedule C, just like stocks and bonds.

I think you mean schedule D. I report all net proceeds on schedule D as capital gains and losses. >>

I believe Schedule D would be used for a hobbyist (or investor) to report capital gains. If one is running a "coin business" in a for-profit manner, I believe Schedule C would be appropriate.

dac076

Technically, any income is reportable, subject to IRS rules. I also operate as a business and use Schedule C.

notwilight

<< <i>Now I report the coin gains and losses on my schedule C, just like stocks and bonds. I think you mean schedule D. I report all net proceeds on schedule D as capital gains and losses. There is a lot of interesting advice here. >>



RYK,
Good advice. I put as much as I can on Schedule D because I have carryover losses from the tech bubble pop of 2001. --Jerry

GAT

Revenue Canada has forced eBay into reporting to them any Canadian who sales are over $5,000 or 50 items in a calendar year. There was talk earlier this year that eBay might do the same with IRS starting in 2008.

BECOKA

I let my tax guy take care of it. It all gets listed on one of the schedules in some form or another.

ARCO

All you collectors who pay taxes on your hobby - what kind of squares are you?

Tyler

RYK

<< <i>

<< <i>Now I report the coin gains and losses on my schedule C, just like stocks and bonds. I think you mean schedule D. I report all net proceeds on schedule D as capital gains and losses. There is a lot of interesting advice here. >>



RYK,
Good advice. I put as much as I can on Schedule D because I have carryover losses from the tech bubble pop of 2001. --Jerry >>



My goodness! Still carrying over losses from 2000-2002? I am so sorry.

BTW, my comment was not meant to be advice. I was simply reporting how I handle it. Advice in this area should only be given by professionals, and I am only reporting what my professional advised me to do, as well as how I interpret the tax code in this area.

pharmer

<< <i>

<< <i>Do you have to show all ebay sales on your year end Tax returns? I was told that if I was thinking of selling my coins I should do just that to protect me from any I.R.S. problems. Yaha >>



Yes >>



A straight answer! Good for you.

notwilight

<< <i>

<< <i>

<< <i>Now I report the coin gains and losses on my schedule C, just like stocks and bonds. I think you mean schedule D. I report all net proceeds on schedule D as capital gains and losses. There is a lot of interesting advice here. >>

RYK, Good advice. I put as much as I can on Schedule D because I have carryover losses from the tech bubble pop of 2001. --Jerry >>

My goodness! Still carrying over losses from 2000-2002? I am so sorry. BTW, my comment was not meant to be advice. I was simply reporting how I handle it. Advice in this area should only be given by professionals, and I am only reporting what my professional advised me to do, as well as how I interpret the tax code in this area. >>



Yep. Market crashed the same time my ex wife went insane (literally). I should have moved out of the market when i didn't have time to follow it. I was very agressively invested and up several hundred percent at the time. lost it all. Now I'm hoping to get all the credits used before they expire after 10 years. My poor choice of words--I didn't mean "advice". --jerry

TwoSides2aCoin

<< <i>No, congress passed a law exempting ebay from taxes because of the tremendous contribution it has made to the "community". --jerry >>



Jerry, I cannot believe you didn't get a good or , yet.

That is a classic answer

pharmer

<< <i>

<< <i>

<< <i>

<< <i>Now I report the coin gains and losses on my schedule C, just like stocks and bonds. I think you mean schedule D. I report all net proceeds on schedule D as capital gains and losses. There is a lot of interesting advice here. >>

RYK, Good advice. I put as much as I can on Schedule D because I have carryover losses from the tech bubble pop of 2001. --Jerry >>

My goodness! Still carrying over losses from 2000-2002? I am so sorry. BTW, my comment was not meant to be advice. I was simply reporting how I handle it. Advice in this area should only be given by professionals, and I am only reporting what my professional advised me to do, as well as how I interpret the tax code in this area. >>



Yep. Market crashed the same time my ex wife went insane (literally). I should have moved out of the market when i didn't have time to follow it. I was very agressively invested and up several hundred percent at the time. lost it all. Now I'm hoping to get all the credits used before they expire after 10 years. My poor choice of words--I didn't mean "advice". --jerry >>



At least you're not bitter.

Longacre

I'm curious how closely people follow the tax advice given out on these boards. Personally, if I had a medical issue, I wouldn't ask for a diagnosis in a public forum. I'm not trying to be negative toward the OP; I'm just curious.

YaHa

<< <i>Revenue Canada has forced eBay into reporting to them any Canadian who sales are over $5,000 or 50 items in a calendar year. There was talk earlier this year that eBay might do the same with IRS starting in 2008. >>



See!!!!!!!!!!!!! Thats what I am always worried about. Someone changing the rules under you nose. Big boy is always watching. I gamble and win more than I lose, yea I do. I have to save my horse racing programs and losing race track tickets everytime I go to the races just in case of a "hit over $599.00 on any exotic" within the year. I have had to sign many 1099's in the past years. Its always a wash with losing tickets/1099 winnings. I was told during a audit once even if I win a $10 lottery scratch off by law it is taxable. Yaha

pharmer

The OP doesn't deserve negativity. Save that for the smart-azz responders.

RBinTex

No but you definitely have to include any NET profit you made.

jmski52

I'm curious how closely people follow the tax advice given out on these boards. Personally, if I had a medical issue, I wouldn't ask for a diagnosis in a public forum. I'm not trying to be negative toward the OP; I'm just curious.

Isn't there a "someone in the Coin Forum told me that I didn't have to report it" defense?

jdimmick

My E-bay sales are part of My Coin Business, that along with OTC sales, dealer to dealer sales, as well as BST sales are all recorded in Schedule C and are part of my income.

jim

jom

If you have a coin business you report it on Schedule C as many have said.

If you are just a "hobbyist" then any gains must be reported as a Capital Gain. Unfortunately, collectibles do NOT get the same treatment as sales of stock or real estate does. I believe the cap gain rate is 28%. If you have this situation see an accountant.

jom

ILikeMercs

I have no income and don't file taxes. If I did make more, selling coins, than the minimum amount of income requiring me to file, I still wouldn't.

mgoodm3

I just hand a speadsheet to my accountant.