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How do you determine the true cost of your coins/collectibles?

jmcu12jmcu12 Posts: 2,452 ✭✭✭
in U.S. Coin Forum
When buying an item, beit on Ebay, at a show, etc. how do you determine the cost of what you purchased?

For me I try to add only the costs in that contribute to the coin itself.

If its ebay I add in shipping.
If its an online auction I add in shipping, buyers premium etc.; essentially the largest number on the invoice is my cost.
If I buy it at a show, I will cost average gas, hotel, meals, etc. assuming that this was the only reason for my visit. If I am traveling on business then I dont add those in. And if it is a local show I also dont include gas for those.
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Comments

  • JJMJJM Posts: 8,089 ✭✭✭✭✭
    That sounds about right to me.
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  • LakesammmanLakesammman Posts: 17,460 ✭✭✭✭✭
    Don't forget interest on your LOC........ image
    "My friends who see my collection sometimes ask what something costs. I tell them and they are in awe at my stupidity." (Baccaruda, 12/03).I find it hard to believe that he (Trump) rushed to some hotel to meet girls of loose morals, although ours are undoubtedly the best in the world. (Putin 1/17) Gone but not forgotten. IGWT, Speedy, Bear, BigE, HokieFore, John Burns, Russ, TahoeDale, Dahlonega, Astrorat, Stewart Blay, Oldhoopster, Broadstruck, Ricko, Big Moose, Cardinal.
  • ambro51ambro51 Posts: 13,949 ✭✭✭✭✭
    Ugh. I stuff receipts into a drawer and then basically forget the cost.
  • DAMDAM Posts: 2,410 ✭✭
    I would agree with everything but this...

    << <i>If I buy it at a show, I will cost average gas, hotel, meals, etc. assuming that this was the only reason for my visit. ... >>



    Reason... what if you only bought one coin for $50. Results in a quite high cost basis for that one coin.

    Otherwise, I do the same.
    Dan
  • CoinRaritiesOnlineCoinRaritiesOnline Posts: 3,681 ✭✭✭✭


    << <i>I would agree with everything but this...

    << <i>If I buy it at a show, I will cost average gas, hotel, meals, etc. assuming that this was the only reason for my visit. ... >>



    Reason... what if you only bought one coin for $50. Results in a quite high cost basis for that one coin. >>



    But in this scenario you actually did pay a high cost.
    John Agre

    Coin Rarities Online
  • BaleyBaley Posts: 22,663 ✭✭✭✭✭


    << <i>Ugh. I stuff receipts into a drawer and then basically forget the cost. >>



    that's my method too

    Liberty: Parent of Science & Industry

  • derrybderryb Posts: 37,661 ✭✭✭✭✭
    If your cost records are to be used for taxable income reporting, how you calculate will depend on how you file. There are one set of expenses allowed for "investment income" and a larger set of expenses allowed for "business income." The drawback to claiming as business income is the additional self employment tax (social security) that must be paid along with the income tax. Review of the IRS website for instruction on schedule C (business income) and schedule D (capital gains). You also must determine from IRS rules which schedule you must use based on their rules on what is a business and what is an investment.

    No Way Out: Stimulus and Money Printing Are the Only Path Left

  • s4nys4ny Posts: 1,573 ✭✭✭
    On Ebay: purchase price + shipping cost - Ebay bucks. (2%)
    I don't reduce cost by credit card cashback.

    On coins traded for other coins: treated as exchange, cost basis from traded coin continues
    into acquired coin. Add or subtract any cash difference.

    At shows, actual cost, no additions for parking, admission, etc.
  • CoinRaritiesOnlineCoinRaritiesOnline Posts: 3,681 ✭✭✭✭


    << <i>I stuff receipts into a drawer and then basically forget the cost. >>



    Sounds like you might be able to skip step 1 and really streamline this process.
    John Agre

    Coin Rarities Online
  • OKbustchaserOKbustchaser Posts: 5,546 ✭✭✭✭✭


    << <i>

    << <i>I stuff receipts into a drawer and then basically forget the cost. >>



    Sounds like you might be able to skip step 1 and really streamline this process. >>



    That would be me who skips step 1.
    Just because I'm old doesn't mean I don't love to look at a pretty bust.
  • BryceMBryceM Posts: 11,857 ✭✭✭✭✭
    Maybe first ask yourself why you care.

    If you're looking at this as a business or as an investment, your accounting procedures are a little more important. If you're tracking it for tax purposes, I'd recommend talking to a good accountant who can give you advice that will pass muster with the IRS. If you are coming at this as a hobbyist, maybe an exact accounting isn't necessary and you do it however you'd like.
  • GeorgeKelloggGeorgeKellogg Posts: 1,251 ✭✭
    I think you have accurately described a legitimate approach to establishing the cost basis of a coin. I follow this method for my purchases.
    "Clamorous for Coin"
  • SonorandesertratSonorandesertrat Posts: 5,695 ✭✭✭✭✭
    I have a ledger, but I do not dwell on what I paid for items.
    Member: EAC, NBS, C4, CWTS, ANA

    RMR: 'Wer, wenn ich schriee, hörte mich denn aus der Engel Ordnungen?'

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  • renomedphysrenomedphys Posts: 3,822 ✭✭✭✭✭
    What about the social cost? Sanity? And there's only so many mustard stains a shirt can take!

    Empty Nest Collection

  • BaleyBaley Posts: 22,663 ✭✭✭✭✭


    << <i>

    << <i>

    << <i>I stuff receipts into a drawer and then basically forget the cost. >>



    Sounds like you might be able to skip step 1 and really streamline this process. >>



    That would be me who skips step 1. >>



    we're guys that rarely if ever sell coins; method would be much different if we were dealers

    Liberty: Parent of Science & Industry

  • REALGATORREALGATOR Posts: 2,644 ✭✭✭✭✭
    Hobbiest: Do not count costs associated with your enjoyment such as attending shows, subscriptions, supplies...
    Business: Count everything reasonable associated with the cost of obtaining and maintaining your inventory. I guess the IRS tells you what that is.
  • DAMDAM Posts: 2,410 ✭✭


    << <i><< I would agree with everything but this...

    << If I buy it at a show, I will cost average gas, hotel, meals, etc. assuming that this was the only reason for my visit. ... >>



    Reason... what if you only bought one coin for $50. Results in a quite high cost basis for that one coin. >>



    But in this scenario you actually did pay a high cost. >>



    Agreed. And just before I replied realgator stated my thought this way...


    << <i>Hobbiest: Do not count costs associated with your enjoyment such as attending shows, subscriptions, supplies...
    Business: Count everything reasonable associated with the cost of obtaining and maintaining your inventory. I guess the IRS tells you what that is. >>



    As a collector I look at traveling to shows, expenses relating to shows, as the cost to enjoy my hobby. Certainly a dealer would look at those expenses differently.
    Dan
  • WaterSportWaterSport Posts: 6,918 ✭✭✭✭✭
    I do not bother with show additional cost. Thats like adding electricity and internet cost when buying on line.

    WS
    Proud recipient of the coveted PCGS Forum "You Suck" Award Thursday July 19, 2007 11:33 PM and December 30th, 2011 at 8:50 PM.
  • johnny9434johnny9434 Posts: 29,232 ✭✭✭✭✭


    << <i>That sounds about right to me. >>

    sounds about right to me as well
  • LindeDadLindeDad Posts: 18,766 ✭✭✭✭✭


    << <i>Hobbiest: Do not count costs associated with your enjoyment such as attending shows, subscriptions, supplies...
    Business: Count everything reasonable associated with the cost of obtaining and maintaining your inventory. I guess the IRS tells you what that is. >>



    image
    My Current project....https://www.pcgs.com/setregistry/mysetregistry/album/160794
  • airplanenutairplanenut Posts: 22,386 ✭✭✭✭✭


    << <i>

    << <i>I would agree with everything but this...

    << <i>If I buy it at a show, I will cost average gas, hotel, meals, etc. assuming that this was the only reason for my visit. ... >>



    Reason... what if you only bought one coin for $50. Results in a quite high cost basis for that one coin. >>



    But in this scenario you actually did pay a high cost. >>

    I look at it differently. I'll go to a local show and have almost no expenses to get there (gas is insignificant). If I travel to a show, it's going to be a major one--ANA, Baltimore, etc. In that case, while there's a cost to get there, I'm not going just for the coins. In fact, while it's nice to pick something up, I usually spend a lot of my time catching up with friends I haven't seen recently. Even if you told me I couldn't buy anything, I'd still go for the social aspect, so I'd rather say the cost of travel got me that part, and any coins are nice, incidental bonuses.
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