<< <i>This applies to vendor-to-business transactions. Not buying or selling to retail customers. >>
Today, yes. But the new law applies when businesses buy from individuals. See http://About.Ag/1099-healthcare.htm for the summary/details. >>
"Stock in trade" -- that is "inventory", is NOT subject to 1099 reporting. Nor are retail sales. These are all reported in the business' own records. 1099 forms are a "catch-all" for income NOT REPORTED ELSEWHERE... The carpet cleaning service, copy machine toner, the lawn guy. >>
The original law states that 1099s are required for "making payment in the course of such trade or business to another person", and it is quite clear that payments to individuals require the 1099s. The new law states that "amounts in consideration for property" need to be reported on a 1099.
Why do you think that inventory or retail sales are exempt? >>
Sales by a retail store, with cash, check or credit card payments coming in from a customer, are already reportable under normal business tax reporting laws. There is nothing new there. Businesses are supposed to report their sales.
The new law covers, among other things, purchases by a retail store, with cash or check going OUT TO a customer. Popular belief has it that most such receipts of cash or check by the general public don't get reported to the IRS as income. That is what the new law is aimed at.
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
sure haven't heard that. Bullion and/or GLD are investments just like any other, subject to tax and subject to losses as well.
Not sure what the ultimate answer is, but no I don't believe gold or GLD are taxed in the same way as stocks. This from Barron's:
Gold and silver receive special treatment in the tax code. Considered collectibles, not capital assets, they don't qualify for the maximum 15% tax rate on long-term capital gains. Instead, gains on the sale of gold and silver investments, including gold- and silver-backed ETFs, and gold bullion and coins (except certain U.S.-issued coins), are taxed at a maximum rate of 28% when such investments have been held for more than a year.
<< <i>Why do you think that inventory or retail sales are exempt? >>
Sales by a retail store, with cash, check or credit card payments coming in from a customer, are already reportable under normal business tax reporting laws. There is nothing new there. Businesses are supposed to report their sales.
The new law covers, among other things, purchases by a retail store, with cash or check going OUT TO a customer. Popular belief has it that most such receipts of cash or check by the general public don't get reported to the IRS as income. That is what the new law is aimed at. >>
Thank you for helping confirm that. Frankcoins seems to think that for some reason that stores purchasing their inventory (e.g. coins or bullion) from individuals would be exempt. I (and just about everyone else writing about it) doubts that, so I'm hoping to see if there is something I overlooked that might cover that. I'm guessing that was just "common knowledge" passed from one dealer to another, that just isn't true (it reminds me of my first job, where the manager said that you had to report 10% of your tips as income -- it just sounded so true at the time for some reason).
Just because you sell something doesn't mean it's income . What if I bought 1 oz gold a month ago for $ 1,250 and I sell it today for $ 1,150 ? Will uncle send me a check for $ 28 ? I assume so, or else something is not right with this picture . Uncle wants to get his gruby fingers into YOUR cookie jar , but is not willing to take any of the risk, or share in any of the loses. That's not the way it should work . What happened to no taxation without representation ? Did you vote on this ? Did I vote on this ? The constitution was designed to protect us from the government . Taxes might not be such a bad thing IF the gov used our money wisely . I kind of look at it this way.. Lets say your uncle sam knocks on your door Friday and says ," hey , uhh you got paid today , right ? , How much you make a week ? $ 480 ? Hey, uhh , how 'bout lettin' me have about...$197 ? " One week latter that b@stard is at the door again . Same story . After handing him another $ 197 , you ask him what he plans on doing with all the money you are giving him . " Well....if you must know.. cigs, beer, hookers and lottery tickets my boy . That's what I am doing with your money. See you next Friday"
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<< <i>This applies to vendor-to-business transactions. Not buying or selling to retail customers. >>
Today, yes. But the new law applies when businesses buy from individuals. See http://About.Ag/1099-healthcare.htm for the summary/details. >>
"Stock in trade" -- that is "inventory", is NOT subject to 1099 reporting. Nor are retail sales. These are all reported in the business' own records. 1099 forms are a "catch-all" for income NOT REPORTED ELSEWHERE... The carpet cleaning service, copy machine toner, the lawn guy. >>
Are you even aware there is a new law? Have you been to About.Ag/1099-healthcare.htm?
The original law states that 1099s are required for "making payment in the course of such trade or business to another person", and it is quite clear that payments to individuals require the 1099s. The new law states that "amounts in consideration for property" need to be reported on a 1099.
Why do you think that inventory or retail sales are exempt? >>
Sales by a retail store, with cash, check or credit card payments coming in from a customer, are already reportable under normal business tax reporting laws. There is nothing new there. Businesses are supposed to report their sales.
The new law covers, among other things, purchases by a retail store, with cash or check going OUT TO a customer. Popular belief has it that most such receipts of cash or check by the general public don't get reported to the IRS as income. That is what the new law is aimed at.
Not sure what the ultimate answer is, but no I don't believe gold or GLD are taxed in the same way as stocks. This from Barron's:
Gold and silver receive special treatment in the tax code. Considered collectibles, not capital assets, they don't qualify for the maximum 15% tax rate on long-term capital gains. Instead, gains on the sale of gold and silver investments, including gold- and silver-backed ETFs, and gold bullion and coins (except certain U.S.-issued coins), are taxed at a maximum rate of 28% when such investments have been held for more than a year.
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<< <i>Why do you think that inventory or retail sales are exempt? >>
Sales by a retail store, with cash, check or credit card payments coming in from a customer, are already reportable under normal business tax reporting laws. There is nothing new there. Businesses are supposed to report their sales.
The new law covers, among other things, purchases by a retail store, with cash or check going OUT TO a customer. Popular belief has it that most such receipts of cash or check by the general public don't get reported to the IRS as income. That is what the new law is aimed at. >>
Thank you for helping confirm that. Frankcoins seems to think that for some reason that stores purchasing their inventory (e.g. coins or bullion) from individuals would be exempt. I (and just about everyone else writing about it) doubts that, so I'm hoping to see if there is something I overlooked that might cover that. I'm guessing that was just "common knowledge" passed from one dealer to another, that just isn't true (it reminds me of my first job, where the manager said that you had to report 10% of your tips as income -- it just sounded so true at the time for some reason).
today for $ 1,150 ? Will uncle send me a check for $ 28 ? I assume so, or else something is not right with this picture .
Uncle wants to get his gruby fingers into YOUR cookie jar , but is not willing to take any of the risk, or share in any of the loses.
That's not the way it should work . What happened to no taxation without representation ? Did you vote on this ? Did I vote on this ?
The constitution was designed to protect us from the government .
Taxes might not be such a bad thing IF the gov used our money wisely . I kind of look at it this way..
Lets say your uncle sam knocks on your door Friday and says ," hey , uhh you got paid today , right ? , How much you
make a week ? $ 480 ? Hey, uhh , how 'bout lettin' me have about...$197 ? "
One week latter that b@stard is at the door again . Same story . After handing him another $ 197 , you ask him what he plans on doing with all
the money you are giving him . " Well....if you must know.. cigs, beer, hookers and lottery tickets my boy . That's what I am doing with your money.
See you next Friday"
Lewis