Taxes on BST?
CoinHoarder
Posts: 2,642 ✭✭✭✭✭
If I sell coins on the BST, am I required to keep track of the sales for yearly state and federal tax reporting?
0
CoinHoarder
Posts: 2,642 ✭✭✭✭✭
Comments
The IRS could answer that very well for you.
You're probably not going to like their answer. I'm going to say the answer is yes but then again you should be reporting everything you purchase on line to the state to pay your share of sales tax... wonder how many do. States are beginning to force that issue now.
Yes, capital gains must be reported.
And ordinary income, as well. But the OP should seek advice from a professional.
Mark Feld* of Heritage Auctions*Unless otherwise noted, my posts here represent my personal opinions.
If you're not a business you could end up paying a hobby tax on the profits/ capital gains, if any.
You would only pay taxes on the profit made.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
The simple answer is yes. All income is subject to reporting. The basis though is the question. Hobby or Business The IRS has a lot of articles and even talking to a CPA may be wise.
I keep a log on many of the coins that I bought years ago. But, do not have receipts to document all the purchases.
So, would that pose a problem proving what the profit margin would be from a sale?
The answer is very different depending on if you're a hobbyist selling a couple of coins now and then or a dealer who treats their numimatic endeavors as a business. My understanding is that a hobbyist would pay capital gains taxes on any profit made......... It would be the rare hobbyist who is turning a profit in this market.
But, the only sensible advice is to use the services of a tax professional.
Profit???
Or if they audit you and want to be anal about it and you can't prove your basis then they will assume it to be zero or face value.
I am not a tax expert, nor do I play one on TV. But...SHUT THE HELL UP!
Cheers
Bob
Nice try, Mr IRS man
Why single out BST? Any sale that yields a profit needs to be tracked, whether it is on BST, Craig's List, Instagram or to a dealer at a coin show. Losses could be written off against gains, so you should track everything.
Do you really have to ask?
I certainly spent more than i made.....
Paper money eventually returns to its intrinsic value. Zero. Voltaire. Ebay coinbowlllc
As @Perryhall has said, and is correct, you are only required to pay tax on profit made. Can you claim a loss?
As a hobbyist, no but it can be used to offset any profits made on other coins.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
You can claim losses against ordinary income IF you are an investor. Being an investor means you have knowledge of what you are doing, keep good accurate records and have a profit motive. Profit, potential profit, knowing how to make a profit, change habits to make a profit. It’s all about profit with the IRS. The IRS will accept some loses but you better prove you’re in it to make profit at some point and that you have the knowledge and ability to get there...
A wise CPA might tell you that you incurred storage costs, insurance costs, transportation and handling costs, inflation while curating the coin after its initial purchase until the time it was sold for a probably loss.
Throw in some advertising and marketing costs in order to sell it.
Unless you are a dealer I don't believe that you're entitled to all of the perks that a dealer enjoys when it comes to write-off expenses.
I had gotten a lot of my tax advice here on the board for several years but once I was released I started looking elsewhere.
"Inspiration exists, but it has to find you working" Pablo Picasso
Wow. Just wow. That has to be an alt.
Great transactions with oih82w8, JasonGaming, Moose1913.
Walter White is my accountant.
BST does not exist.
The only coins I have are for parking meters.
Income is taxable. IRS website tells you everything you need to know. Tax programs (I like H&R Block) make it simple once you know what records will be needed at tax time. Some people pay a mechanic to change their oil, some people do it themselves.
FWIW, cash transactions most often leave no trail. Therefore personal records are more important when it comes to finding the info to report the income.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Not really, they now have payment processors such as PP issuing 1099's to both the seller and the IRS. This is intended to keep sellers honest when it comes to reporting on-line sales income. There is no effort to enforce payment by the buyer who buys on-line. After all, the seller should pay this tax, he's the one who ended up with the income. Only one party is required to pay the state tax for the income.
No Way Out: Stimulus and Money Printing Are the Only Path Left
You are required to report the income. To do that correctly you will need sales records. To take advantage of deducting the expenses involved with each sale, you would be wise to also keep those records. Your coins are either business inventory (IRS Schdule C) or capital asset investments (Schedule D). If you're not running a "business" it's easier to treat them as investments. Keep in mind that coin assets are treated as "collectibles" when it comes to reporting their sale.
No Way Out: Stimulus and Money Printing Are the Only Path Left
@Lakesammman
this is not true. You are correct that the enforcement was lacking. But States passed "user fees" on internet sales long before the Wayfair ruling. The Wayfair case was in some measure a result of non-compliance with buyers in paying the "user fees". Of course, rules vary by state, but for the last 10 years or so, NY residents were supposed to pay "user fees" on all out-of-state and, at that time, untaxed purchases on their State Income taxes.
narc alert
This comment is a little off Topic. I'm wondering when someone is going to challenge Capitol Gains taxes! Why do you think the government wants steady inflation? Capitol Gains taxes are just a way for the government to tap into the public's assets.
I think Capital Gains taxes should be figured on inflation adjusted numbers. I bet many folks would actually see some capital loses instead of gains if they were figured fairly!
What?? People are making profits on selling coins??
I must look into this .... 
Cheers, RickO
You want the deficit to grow more than a Trillion $ per year? That’s all we need Is Another tax break for people like me that make a living trading. Kudlow agrees with you...
ask a tax expert first about that, this way you have the info from experts
COINS FOR SALE AT LINK BELOW (READ CAREFULLY)
https://photos.app.goo.gl/oqym2YtcS7ZAZ73D6
My momma always said , " if you make money, you record it and report it." Income is taxable. So if you buy a silver dollar for ten dollars and sell it for $11. You owe taxes on a dollar ( minus the costs associated with selling). And time is billable. Please remit ten dollars via PayPow to my account, for the online tax advice.
We owe taxes on the money we make. Simple code , really.
``https://ebay.us/m/KxolR5
Except that they aren't all created equal when it comes to the knowledge part.
So I don't add to my elite status I will not comment on this as it would become very Political!
I believe this thread wins the award as the most unnecessary threat/thread of the year.
It is certainly a contender, but there is some tough competition this year (like every year for that matter).
The 1099K accomplishes two important tasks: It forces sellers to report their income from on-line sales and it forces payment processors to collect and remit state sales tax on behalf of the sellers for whom they process payments. Just as with retail sales, the Wayfair ruling results in sellers (via their payment porcessor) collecting and paying the sales tax to each state. Knowing that the payment processor is reporting the seller's income to the IRS will force all but the stupid sellers to also report the income or face the consequences of tax evasion. Requiring the payment processor to collect and remit state sales tax ensures the sales tax is paid, something that was not being accomplished with uneforceable "user fees." States cannot and do not require both parties (buyer and seller) to pay the sales tax. Therefore a buyer "user fee" is not required if tax was collected by the seller or by the payment processor.
No Way Out: Stimulus and Money Printing Are the Only Path Left
That is correct but unrelated to what I said about UNTAXED internet purchases.
It's only February. I'm sure some posters are honing their skills.
Great transactions with oih82w8, JasonGaming, Moose1913.
This thread needs some parking lot washing machine photos with the coin (rare DDO/DDR/DDS/DDI) variety 30 feet away being held with Coronavirus laced hands whilst complaining about ebay and veiled political comments about paypal fees while arguing using profanity with recognized experts and saying bad things about Heather (which is impossible because only good can be said about Heather). .
As the old song goes: "The Eyes Of TAXES (Texas) Are Upon You"
Hey, I got an uncle lives in Taxes.
Lance.
You guys are probably going to laugh at me but what is BST?
Better Submit Taxes.