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This is a Public Service Announcement

WingsruleWingsrule Posts: 3,010 ✭✭✭✭
So I’m sitting here tying up some last minute tax-related issues for 2011 and thought I would pass along some useless calculations to help out everyone who flipped 25th Anniversary sets or dumped a bunch of silver during the spring run-up.

Cost basis, 5 sealed sets: $1,500
Sold for: $3,000
Shipping: $50
Your profit: $1,450
Uncle Sam’s cut: $1,450 x 28% = $406

Cost basis, $100 FV 90% (spot = $10/oz): $715
Sold for (spot = $35/oz): $2,502.50
Shipping: $30
Your profit: $1,757.50
Uncle Sam’s cut: $1,757.50 x 28% = $492.10

Cost basis, 100 oz Engelhard bar: $1,650
Sold for: $3,850
Shipping: $25
Your profit: $2,175
Uncle Sam’s cut: $2,175 x 28% = $609

Note these are hypothetical examples only. Consult your tax advisor.

*Bonus points to anyone who can name the song that used this thread title as an intro…

Comments

  • 57loaded57loaded Posts: 4,967 ✭✭✭
    Jay-z

    remember the backmasking on the ELO album?

    one more bonus point.
  • WingsruleWingsrule Posts: 3,010 ✭✭✭✭
    You may be right, but not the one I am thinking of.
  • 57loaded57loaded Posts: 4,967 ✭✭✭
    may i be at least half-arse right?image
  • The tax man cometh...

    As for the song, I immediately thought of the intro to "Know Your Rights" off of the Live from Here to Eternity album by the Clash although Strummer says "and now this public service announcement with guitar"...so probably not the song you are referring to.
  • WingsruleWingsrule Posts: 3,010 ✭✭✭✭
    DING DING DING

    I was thinking of the studio version, but that is the one. I wasn't quite sure how to display that chord right after "Announcement".
  • AUandAGAUandAG Posts: 24,760 ✭✭✭✭✭
    Your calculations are fun to look at but I'm no where near the 28% tax rate.

    Oh, and I haven't sold so have not incurred a liability, yet.

    bobimage
    Registry: CC lowballs (boblindstrom), bobinvegas1989@yahoo.com
  • WingsruleWingsrule Posts: 3,010 ✭✭✭✭
    Bob,

    Unless I am mistaken (which is why I threw the 'tax advisor' comment in there) PM, coins, stamps, et al are treated as 'collectibles' and subject to a 28% tax. Income bracket has nothing to do with it.

    The examples listed above are not specific to me, but the other stuff I was doing got me headed down this path.

  • Bayard1908Bayard1908 Posts: 4,046 ✭✭✭✭


    << <i>Unless I am mistaken (which is why I threw the 'tax advisor' comment in there) PM, coins, stamps, et al are treated as 'collectibles' and subject to a 28% tax. Income bracket has nothing to do with it. >>



    If the holding period is less than one year, you are mistaken.
  • derrybderryb Posts: 36,792 ✭✭✭✭✭
    Try the Schedule C route, you may pay less than 28%.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • WingsruleWingsrule Posts: 3,010 ✭✭✭✭
    Bayard,

    I 'created' an individual using a popular tax software package an input various scenarios relating to date of purchase and sale, gain amounts, etc, and regardless of the holding period, the total tax due did not change.

    Using Schedule C with a created 'business' didn't help much because of the (I'm guessing) additional payroll / self-employment taxes.

    This is why we have professionals. Your mileage may vary.
  • guitarwesguitarwes Posts: 9,266 ✭✭✭

    I sold my 25th Anniversary sets for $2000, so my taxes aren't but $100 after other expenses. So who's the smart one now? image

    image
    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
    Too many positive BST transactions with too many members to list.
  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    I got busy in November to sell off a bunch of extra stuff, even if at a loss. Reduced my tax bill and generated some capital for something more interesting. Then, I turned right around and bought some Army Commem half dollars. What in the world was I thinking?image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • Wingsrule,

    If your business through sch C is sole proprieter, and you have no employees (other than yourself), then no payroll taxes.
    www.CoinMine.com
  • Who said uncle sam needs to know any of this.................................................
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