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Question for Coin/PM Dealers

BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
We know that if a customers buys more than $10K worth of stuff from you that you have to file a Form 8300 if he gives you more than $10K in cash. So what is the ruling if he sells something to you and wants cash? Do you have to report if you give him more than $10K in cash?
theknowitalltroll;

Comments

  • derrybderryb Posts: 36,823 ✭✭✭✭✭
    I believe the reporting burden is placed on the receiver of the cash.

    "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

  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    Originally posted by: derryb

    I believe the reporting burden is placed on the receiver of the cash.




    Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business



    Each person engaged in a trade or business who, in the course of that trade or business, receives more than $10,000 in cash in one transaction or in two or more related transactions, must file this form.



    A casual seller wouldn't be considered to be in a trade or business.
    theknowitalltroll;
  • derrybderryb Posts: 36,823 ✭✭✭✭✭
    Originally posted by: BAJJERFAN
    Originally posted by: derryb
    I believe the reporting burden is placed on the receiver of the cash.


    Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business

    Each person engaged in a trade or business who, in the course of that trade or business, receives more than $10,000 in cash in one transaction or in two or more related transactions, must file this form.

    A casual seller wouldn't be considered to be in a trade or business.

    and appears it is limited to those who "receive."

    "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

  • guitarwesguitarwes Posts: 9,266 ✭✭✭
    It reads "Each person.....must file this form". Is that each person who RECEIVES money or each person involved in the transaction?



    I guess it doesn't matter if you are a casual seller or business if it is interpreted as BOTH parties in the transaction.

    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
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  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    Originally posted by: derryb

    Originally posted by: BAJJERFAN

    Originally posted by: derryb

    I believe the reporting burden is placed on the receiver of the cash.




    Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business



    Each person engaged in a trade or business who, in the course of that trade or business, receives more than $10,000 in cash in one transaction or in two or more related transactions, must file this form.



    A casual seller wouldn't be considered to be in a trade or business.


    and appears it is limited to those who "receive."







    Yep, ceded that the recipient would be the reporter IF it was reportable. If a dealer would give you more than $10K would you be required to report it? I don't think so, given that the requirements specify people in the business. A few years back I bought about $7500 in gold from my local dealer. He was quick to remind me that I had about $2500 left in cash that I could spend there in the next year. When I sold him about $6K worth of coins for cash, he made no mention of any remaining limit for how much cash he could give to me.
    theknowitalltroll;
  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    Originally posted by: guitarwes

    It reads "Each person.....must file this form". Is that each person who RECEIVES money or each person involved in the transaction?



    I guess it doesn't matter if you are a casual seller or business if it is interpreted as BOTH parties in the transaction.





    An example given from an IRS page was if a jeweler sold $11K in jewelry for cash he had to report it. If he sold his car for $11K in cash, he didn't need to report it.
    theknowitalltroll;
  • ScarsdaleCoinScarsdaleCoin Posts: 5,223 ✭✭✭✭✭
    Its very well explained here if you need further info.... hope this helps



    http://taxmap.ntis.gov/taxmap/pubs/p1544-001.htm
    Jon Lerner - Scarsdale Coin - www.CoinHelp.com
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    Stay under the radar.....image....Cheers, RickO
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