Do Changes in Tax Policy Impact Your Collecting?

Coinosaurus

Unless Congress does something (fat chance), "taxmageddon" will occur on December 31st and raise federal income tax rates with a significant impact to many of the readers here. For most people this consumes a disproportionate amount of discretionary fundage. Are you planning to reduce the 2013 coin budget?

illini420

Absolutely! More money to Uncle Sam means less money for coins.

derryb

I will be reducing my sales, this impacts what I can buy. I hate getting pushed up out of the middle class on paper and not seeing it in the real world.

RYK

I have previosuly set aside a reserve fund for coin purchases. I have also stopped contributing to 529 plans, pulled one kid from private school, and will have my wife, a lawyer by day, working evening shifts at a diner to maintain my coin purchasing power.

daOnlyBG

Good question. Personally, I would find myself buying more, seeing that a sharp rise in taxes will probably discourage the equity and bond markets further. I do need to save my money and hedge against all the other legislation our "dear" Congress throws our way, so I'd probably put more of my savings into gold+silver, provided that the Fed, ECB, and PBC still plan on pumping for stimulus...

...it's a game, really, but it's my honest answer. Would I be buying more coins for my private collection? Probably not

Lakesammman

Probably not - I get a big raise next year when my 4th year med-school son graduates.

mingot

no.

messydesk

Not so much planning on reducing the budget as I am planning on having less discretionary income due to various mageddons, including a multipronged taxmageddon (Fed, Illinois, Crook County), tuitionmaggedon, and repairmageddon (both cars over 10 years old, furnace and A/C 20 years, water heater 12 years).

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Mercury

Yes, more taxes, means less income, which means fewer purchases.

drwstr123

Nah...I got me a bama-phone.

a-bama-phone

jdimmick

Closing the biz for next year to reduce income to mere nothing.

CalicoJack

No. The amount of change in my taxes would be trivial. If I really cared I would just shelter it by increasing my 401K contribution 1%. Nice try congress.

littlebear

<< <i>and will have my wife, a lawyer by day, working evening shifts at a diner to maintain my coin purchasing power. >>



Either you are very brave, like living on the edge, or are positive your wife does not read these forums.............................


Larry L

Cameonut

YES
Increases in taxes will mean I will spend less and wait it out for better days. Coins will not be a priority while we slide into a deeper recession.

And I will stop selling coins altogether so I will have no income there.

And I will also predict that this would drive many more collectors/dealers underground to avoid sales taxes and capital gains taxes altogether.

Moldnut

No.

morgansforever

What a great feeling, I get to donate more money (concept) to the rapist in Washington, FN awesome.

TwoSides2aCoin

I might have to settle for lower grades. The tax remains the same so I have less fun with coins, but it's fun just the same. I could be with a nagging wife and that would be miserable.

JCMhouston

No effect, I buy below my means anyway.

oreville

I think coins will BENEFIT from the upcoming tax cliffhanger!

Coins only get a long term capital gain rate of 28% or less depending on your tax bracket. That will NOT change in 2013! I am not sure if coins will be subject to the medicare taxes. I am trying NOT to clutter my mind with details of 2013 rates just yet.

Long term capital gain rates on all other assets currently set at 15% will rise to 20% PLUS a new medicare tax of 2.9% or something like that (i forget the exact %)

At the very least, coin will benefit from a narrowing of the long term capital gains rates disavantage in now suffers from.

EagleEye

Income Taxes are a lagging drain on income, so any tax increase woudn't be felt until the year following the income made. Only a sales tax would have an immediate effect.

I am strong proponent of donation as a way to offset income and reduce your taxes. You can buy stamp collections on eBay for 10c on the dollar, get them appraised for full catalog value, make it a donation, and write off $10,000 for every $1,000 purchased. There are a couple hoops to jump through, but it is a legal menuver.

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jmski52

Any reduction in my discretionary income due to taxes will directly reduce my spending on coins, possibly all the way to zero if you don't count bullion.

silverpop

nope

taxbuster1040

I buy the coins I want. Whether I pay more tax has no impact on my purchase decisions. If a few more bucks in taxes incapacitates your coin buying, you shouldn't be buying any coins....

Elcontador

<< <i>I am strong proponent of donation as a way to offset income and reduce your taxes. You can buy stamp collections on eBay for 10c on the dollar, get them appraised for full catalog value, make it a donation, and write off $10,000 for every $1,000 purchased. There are a couple hoops to jump through, but it is a legal menuver. >>



A qualified appraisal would have to be attached to said return. Appraisers who are involved in appraisals valuing goods in the manner described above are subject to nearly confiscatory fines and sanctions. This may have worked before the current laws punishing appraisers for this kind of appraisal came into effect, but you'd have a hard time finding an appraiser willing to do this sort of thing now.

droopyd

I will plan to declare all of my profits as capital gains. Assuming that I ever have any profits.

OnTheHunt

<< <i>Income Taxes are a lagging drain on income, so any tax increase woudn't be felt until the year following the income made. Only a sales tax would have an immediate effect.

I am strong proponent of donation as a way to offset income and reduce your taxes. You can buy stamp collections on eBay for 10c on the dollar, get them appraised for full catalog value, make it a donation, and write off $10,000 for every $1,000 purchased. There are a couple hoops to jump through, but it is a legal menuver. >>



Sounds like something Romney would do. Might be legal but it sure doesn't sound ethical.

Steve

rec78

<< <i>I have previosuly set aside a reserve fund for coin purchases. I have also stopped contributing to 529 plans, pulled one kid from private school, and will have my wife, a lawyer by day, working evening shifts at a diner to maintain my coin purchasing power. >>

derryb

<< <i>Income Taxes are a lagging drain on income, so any tax increase woudn't be felt until the year following the income made. Only a sales tax would have an immediate effect. >>


Sorry, buy my income gets drained by tax increases every payday. Tax withholding tables take affect immediately.

RYK

The serious answer is that anything that reduces my net income or increases my fixed expenses negatively impacts my ability to purchase coins.

TwoSides2aCoin

Taxes and death are inevitable. I know I will die and be taxed to death.
Policies and politics will constantly change . That's why God gave us an "edit" feature.

johnny9434

<< <i>Absolutely! More money to Uncle Sam means less money for coins. >>

da bums

pennyannie

No, i will not let it bother me. I get to tell the uncle how much money i make for the year. If they go up, i go down and keep it the same. I take my big hit on property tax for the county i live in. Most of my rent property has a tax of 1200 dollars a building times 24, my house taxes are going from 6k a year to 7k this year. I have 6 mobile hhomes on lots and the highest tax bill is 450 a year. The mobile homes make me more $$ than my brick duplexs. They keep saying the economy is getting better but my renters will tell you otherwise. I suffered mass vacancies in 2009, was 100 percent full by 2011 and am full up now but i have had to change the rent collection on at least 30 percent of them, all used to pay at the 1st now i get some bi-weekly and weekly. I am still charging less for rent than i was charging in 2008.

EagleEye

Sorry, buy my income gets drained by tax increases every payday. Tax withholding tables take affect immediately.

But an increase in taxes wouldn't take effect until next year. So, your coin buying can go on unaffected.