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"Rare Coin" article on CNBC
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Posts: 913 ✭✭✭✭
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<< <i>FYI
http://www.cnbc.com/id/101399860 >>
let there be link
When the 1% has bought everything else, I'm gonna make a killing!
Rare coins also receive favorable tax treatment. David Kautter, managing director of the Kogod Tax Center at American University, said investors enjoy two main tax benefits when it comes to their rare-coin investments.
"They are treated as capital assets, so no tax is imposed as they appreciate in value," he said. "The appreciation is not taxed until the coins are sold, and then the tax rate is only 20 percent, not the top individual tax rate of 39.6 percent."
the top tax rate is 28%.
Does mention PCGS in the article as well:
Smaltz said that, despite such instances, improved grading systems—available through companies such as Numismatic Guaranty Corp. (NGC) and Professional Coin Grading Service (PCGS)—have made it easier to determine the provenance and condition of a coin.
"Everything is on its way to somewhere. Everything." - George Malley, Phenomenon
http://www.american-legacy-coins.com
No doubt some of the better rare coins are up 248% from 2003-2013. But the rare coin market in general? Hardly. 248% gain = 3.48X increase from original value.
You'd be hard pressed to find even 1% of the coin market with those kinds of gains over that 10 year period. $20 Saints? Nope. MS64/65 Morgans? Nope. MS65-MS67 seated quarters? Nope.
1804 $10 gold in PF65? Yup....you found one.
I loved this little gem from the article:
When you go through an auction … you're paying 20 percent to purchase it and you're paying another 20 percent to the house," he said. "Before the coin is even out there, you're already 40 percent in."
What kind of stupid people wrote this? Someone better tell all those dealers buying at auctions that they are paying 40% too much for those coins.......
How do they do that????? And to think I was wasting 40% all those years buying at auction? Who knew?
When you go through an auction … you're paying 20 percent to purchase it and you're paying another 20 percent to the house," he said. "Before the coin is even out there, you're already 40 percent in."
What kind of stupid people wrote this? Someone better tell all those dealers buying at auctions that they are paying 40% too much for those coins...........and yet most of them get flipped within 30-90 days.
How do they do that????? And to think I was wasting 40% all those years buying at auction? Who knew?
Did they edit out the part about the 40% auction premium? I did not see that in the article.
They are entirely off base - they want you to put your money in some wall street fund which will lose money or make a measly annual 4 %. Of course the fund manager gets rich. I am close to retirement, in January I cashed out a 401K (instead of rolling it over to a new employer) primarily to fund my coin business even further. I don't want a dime of money in their darn stock market (the way they fought ACA made me so mad) when I have 100% control of it in my coin business. Why not considering the beauty of the Standing Liberty Quarter Issues Or Indian Gold (I am near complete on a $5 Indian set). These coins are a painful reminder to the wall street crowd that once upon a time there was an age when real money was in circulation - silver and gold. I hope the bitcoin thing folds, their hope is to take over commerce like paypal took over ebay and then they will skim 3% don't you c?
You have a whole class of workers who are currently being exploited - they should be making 20 / hr (based on current productivity) vs the current 7.25 slave wages minimum wage. Yet even the presidents efforts to raise this to 10.10 are being fought by the elite.
One day these workers will wake up realizing the lies of the system, all of them unionize, and shut it all down until they get what they want.
<< <i>I file a schedule C on my rare coin activities. I got an assumed name for the business years ago, mainly to avoid use tax on coins. It allows me to deduct a lot of things not ordinarily available. My tax advisor told me if I dine out and leave my business card on the table I can deduct the cost of that meal. >>
You might want to get a new tax advisor.
Deducting meals and entertainment
If you are not in the business of buying and selling coins, the tax rate on collectibles - all collectibles - is 28% if you have held them long enough so that the gains are not treated as ordinary income. They are NOT capital gains, which are taxed at 15% or 20%, depending on your marginal tax rate for ordinary income. These are applicable tax rules. If you are handling these transactions in any other manner, they are not being reported correctly to the IRS.
If you are in the business of buying and selling coins, they are treated as inventory. Gains and losses on the sale of inventory are always treated as ordinary income / losses.
"Seu cabra da peste,
"Sou Mangueira......."
You might want to get a new tax advisor.>>
Perhaps someone who knows, down at the Barbershop?
"Yeah, Ralph, I make the same kind of deductions. I deduct my union dues, when I get my rubber boots vulcanized, when I get my lunchbox waterproofed, and I take 25% off my rent when I use it for business purposes."
"Norton, You work in a sewer. What business could you deduct...could you possibly conduct in your apartment?"
"I practice in the bathtub"
"You practice in the bathtub, and they are investigating my taxes"
Eric
<< <i>Text My tax advisor told me if I dine out and leave my business card on the table I can deduct the cost of that meal. >> You might want to get a new tax advisor.>> Perhaps someone who knows, down at the Barbershop? "Yeah, Ralph, I make the same kind of deductions. I deduct my union dues, when I get my rubber boots vulcanized, when I get my lunchbox waterproofed, and I take 25% off my rent when I use it for business purposes." "Norton, You work in a sewer. What business could you deduct...could you possibly conduct in your apartment?" "I practice in the bathtub" "You practice in the bathtub, and they are investigating my taxes" Eric ------------------------- >>
Yea, just got home from a long day working at my office as a CPA on tax returns!
That Honeymooners episode was one of the greatest episodes ever. Indeed, clients seem to get more advice from their barbers, hair salon places and of course, Norton deducts 25% of HIS apartment!
Eric, thank you for posting that!!!
<< <i>
<< <i>Text My tax advisor told me if I dine out and leave my business card on the table I can deduct the cost of that meal. >> You might want to get a new tax advisor.>> Perhaps someone who knows, down at the Barbershop? "Yeah, Ralph, I make the same kind of deductions. I deduct my union dues, when I get my rubber boots vulcanized, when I get my lunchbox waterproofed, and I take 25% off my rent when I use it for business purposes." "Norton, You work in a sewer. What business could you deduct...could you possibly conduct in your apartment?" "I practice in the bathtub" "You practice in the bathtub, and they are investigating my taxes" Eric ------------------------- >>
Yea, just got home from a long day working at my office as a CPA on tax returns!
That Honeymooners episode was one of the greatest episodes ever. Indeed, clients seem to get more advice from their barbers, hair salon places and of course, Norton deducts 25% of HIS apartment!
Eric, thank you for posting that!!! >>
Part of a previously unseen private sheet of 35mm contact rehearsal photographs of Gleason, Carney and Meadows blocking in "The Adoption", late December, 1965, © Eric K. Longo Collection 2012
No problem! And here I was worried about going off topic.
Eric
"I need ALL of the $42, Alice! ALL of it! How am I gonna go to Fred's Landing?" - Ralph
"Well, just tell Fred to give us a smaller tent with a smaller snake" - Alice