For tax purposes, how long should coin records be kept?

291fifth

I'm in the process of cleaning out all of my files and wonder if there is any reason to keep information relating to coins that were sold at auction in 1999.

Steve27

Generally speaking, tax records should be kept for three years. So I think you're safe destroying records from 1999.

MsMorrisine

IRS site (business)

IRS site (pub 552 individuals)

lcoopie

how would you establish the cost basis
if and when the coins are sold
if the records are not kept till that time?

richardshipp

you mean we're supposed to keep records

ModCrewman

<< <i>IRS site (business)

IRS site (pub 552 individuals) >>

Page 7 of Ms. Morrisine's 2nd link is a good starting point. Unless there's potential for your returns to be classified as fraudulent (in which case I'd keep everything forever and clean up your act). My firm generally advises clients to keep tax return records for 7 years. Copies of your returns as filed, should be kept forever.

1TwoBits

Why are there replies on how long to keep tax returns? The question is how long to keep coin records for tax purposes.

As someone has already mentioned, you need to keep those records until you sell your coins. And if you travel to a show and incur direct expenses to do so - and purchase coins at that show - you need to keep hotel bills, airline receipts, etc. to help in determining the cost basis for the coins purchased at that show. (meals don't count since you would have to eat whether you attended the show or not)

1TwoBits

Longacre

I assume you reported the sale on your 1999 return. I generally like to keep the returns and supporting documentation for 7 years. If you are beyond that point, make sure you get them shredded by a professional shredding firm, and get a certification that they were shredded.

RWB

I assume you reported the sale on your 1999 return. I generally like to keep the returns and supporting documentation for 7 years. If you are beyond that point, make sure you get them shredded by a professional shredding firm, and get a certification that they were shredded.

You can offer the certificate and little bags of shredded tax returns on ebay. Make up a story about them being found in an old chest in Granny’s attic or maybe in the back of a clock. If you throw a dollar bill in the pile you could say it’s “shredded money.” …or, dump in some wheat and call the mix “shredded wheat.”

yellowkid

<< <i>you mean we're supposed to keep records >>



Good one Richard. If you are going to determine a cost basis some day, you better have some records.

PS We are not talking tax returns here.

Walmann

Need records?

Try Records R Us, can really help get that cost basis up.

Longacre

<< <i>

<< <i>you mean we're supposed to keep records >>



Good one Richard. If you are going to determine a cost basis some day, you better have some records.

PS We are not talking tax returns here. >>




Maybe I am missing the point, but isn't the OP referring to tax return reporting that he did in 1999 related to coin sales from that year?

2ndCharter

If you are beyond that point, make sure you get them shredded by a professional shredding firm, and get a certification that they were shredded.

Hmmm - If I throw them in a bonfire in my backyard, should I take a picture of the fire and the ashpile afterwards?

(This is no joke, that's how I have disposed of some old records in the past).

crazyhounddog

Taxes

Barry

If you are beyond that point, make sure you get them shredded by a professional shredding firm, and get a certification that they were shredded.

Why? What's wrong with my own cross-cut shredder?

yellowkid

<< <i>

<< <i>

<< <i>you mean we're supposed to keep records >>



Good one Richard. If you are going to determine a cost basis some day, you better have some records.

PS We are not talking tax returns here. >>




Maybe I am missing the point, but isn't the OP referring to tax return reporting that he did in 1999 related to coin sales from that year? >>



I think I missed the point, I thought we were talking about keeping records of purchase's, not tax records for items already sold, and a few years ago. Sorry.

291fifth

I probably shouldn't have mentioned "tax purposes" since the auction resulted in a BIG loss. I'm just wondering if there is any point in keeping the original receipts for coins that were sold at a loss many year ago.

Longacre

<< <i> If you are beyond that point, make sure you get them shredded by a professional shredding firm, and get a certification that they were shredded.

Why? What's wrong with my own cross-cut shredder? >>



You can certainly do that, too. I was thinking that 291fifth had a lot of records that were beyond the ability of a personal shredder.

291fifth

<< <i>

<< <i> If you are beyond that point, make sure you get them shredded by a professional shredding firm, and get a certification that they were shredded.

Why? What's wrong with my own cross-cut shredder? >>



You can certainly do that, too. I was thinking that 291fifth had a lot of records that were beyond the ability of a personal shredder. >>



The inexpensive cross cut shredder I bought a COSTCO this past weekend can handle them with ease. My collection does not rival that of Virgil Brand.

SanctionII

The OP caused me to pause, think a moment about "coin records", then take a trip dwon memory lane back in time to the 1970's when I first saw the Cheech & Chong classic movie "Up In Smoke" [with Cheech Marin,Tommy Chong and Sargent Studenko].

A great line in that movie is ............................

"Badges?,................ we don't need no stinking Badges."

After getting a chuckle, my mind returns to the present day and can easily envision a dedicated collector saying....................

"Coin records?,......................we don't needno stinking Coin records."

DuPapa

I remember it from Blazing Saddles and before that it was used in "Treasure of the Sierra Madre," HumphreyBogart demands to know if the men about to rob him are bandits or lawmen as they claim. Their response to his question is the famous, "We don't need no stinking badges!"

(Soundbite of movie, "The Treasure of the Sierra Madre")

HUMPHREY BOGART: (As Fred Dobbs) If you're the police, where are your badges?

ALFONSO BEDOYA: (As Gold Hat) Badges? We ain't got no badges. We don't need no badges. I don't have to show you any stinking badges.

pennyannie

<< <i>I assume you reported the sale on your 1999 return. I generally like to keep the returns and supporting documentation for 7 years. If you are beyond that point, make sure you get them shredded by a professional shredding firm, and get a certification that they were shredded. >>



Make sure the certification company puts a green bean on it.