I found this to be interesting.
Mesquite
Posts: 4,075 ✭✭✭
There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.
–John Adams, 1826
–John Adams, 1826
0
Comments
$600 Sale? Get Ready for Tax Form
By David L. Ganz, Numismatic News
June 29, 2010
Other News & Articles
¡öMint Stats: Vet Dollar Sales Ratchet Lower
¡öCCAC in Search of Design Excellence
¡öTrade Dollar Made it Into 1878 Sets
This article was originally printed in Numismatic News.
>> Subscribe today!
A blizzard of paperwork could be about to hit numismatics.
Passage by Congress of the national health care legislation has had an unintended consequence to the nation¡¯s coin collectors, vest-pocket dealers who buy and sell coins, and larger dealers who are frequent buyers of coins that collectors periodically liquidate as they trade up their collections for better coins, or simply sell to take a small profit or loss.
What has happened is that effective Jan. 1, 2012, the whole system of giving and receiving Internal Revenue Service 1099 forms will be turned on its head and all persons (including corporations) who are in business will now have to give 1099 tax reporting forms for coins and other goods that they sell as well as buy.
The responsibility for issuing forms kicks in at $600 for coins or bullion ¨C not a very high level and one that has already started sounding alarm bells. It doesn¡¯t matter in what form payment is made, whether cash, check, credit card, or Yap stone money, the $600 threshold applies.
There¡¯s a bill introduced by Rep. Dan Lungren (H.R. 5141), which has gathered over 80 members of Congress as co-sponsors to repeal this section. Evidently, however, the drafters of the provision think there is a $17 billion loophole that this plugs.
Rare Coin Investing
Want to broaden your retirement portfolio beyond stocks and bonds?
Buy your copy today!
The Industry Council for Tangible Assets is alerting member dealers and the public at large in the hope that some sense of outrage will lead to a ready modification before the law becomes operational in 2012.
Form 1099 is used to report independent contractor income, income from dividends, income from other things ¨C and is one of the reasons why children receive tax bills for work or labor or services performed.
Section 9006 of the Patient Protection and Affordable Care Act (Public Law 111-148, signed into law by President Obama this spring) turns 1099 forms into reporting forms not only for independent contractor¡¯s income ¨C what they have long been used for ¨C but also to show sales, gains and losses on purchases and sales of goods as part of a trade or business.
The section reads (in relevant part) ¡°SEC. 9006. EXPANSION OF INFORMATION REPORTING REQUIREMENTS. (a) IN GENERAL. ¨C Section 6041 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsections
link
<< <i>Reporting parameters for coin/bullion dealers clarified?
Here. >>
Good useful information, as you would expect from ICTA, but this particular piece does not address the issue of the proposed $600 threshhold.
TD
<< <i>Reporting parameters for coin/bullion dealers clarified?
Here. >>
That's the old reporting information. We have a page all about the new requirements at http://About.Ag/1099-healthcare.htm.
Basically, if you sell over $600 worth of goods to a business within a year, they are now required to report a 1099 form (which does not affect the taxes you owe). It does not affect when you buy, or when you sell to an individual that is not acting as a business.
–John Adams, 1826