Ok U.S. Coin sales on ebay can you get caught not paying taxes.
YaHa
Posts: 4,220 ✭
I have never claimed taxes on my ebay sales. Although I am not a dealer and only sell maybe 5k/11k a year I also buy the same or more. So has anyone ever been caught. Really?
I thought if you weren't a dealer or business operator you are exempt. Is this true.
This is the perfect time for a low time econmony for the feds to get the sneeks like myself.
Opinions please.
I won't brag to much but I do win a good amount of $$$ on the offshore sportsbook and have never received a 1099wg from others countries. I was told to make sure all of my deposits in my bank accts were less than $9,000 a pop and I do this also with my paypal withdraws. I heard somewhere paypal could send you year end statements of sales?
I thought if you weren't a dealer or business operator you are exempt. Is this true.
This is the perfect time for a low time econmony for the feds to get the sneeks like myself.
Opinions please.
I won't brag to much but I do win a good amount of $$$ on the offshore sportsbook and have never received a 1099wg from others countries. I was told to make sure all of my deposits in my bank accts were less than $9,000 a pop and I do this also with my paypal withdraws. I heard somewhere paypal could send you year end statements of sales?
0
Comments
"This forum is for entertainment purposes only and should not be used for any life-support, aeronautical nor tax related purposes".
Keep very good records on anything you purchased so that you don't end up getting a "zero basis". That is where they want tax on the whole thing, not just your gain.
Is the amount sold (not necessary to reply) enough to merit being deemed a "Business"?
If so, then declare yourself as such and take all the legitimate expenses as deductions,
Internet, hardware, software, equipment, merchandise etc, etc, etc, etc.
YOU gotta do all the ciphering, Bro.
Are the coins you buy going to be resold? This could make a difference if hey are bought for part of your resell inventory. Then the difference would be taxable. But of course I am no tax man nor claim to know much.
Their real slow, but they do catch on sometimes.
<< <i>If you buy more than you sell, there is no problem. >>
<< <i>I have never claimed taxes on my ebay sales. Although I am not a dealer and only sell maybe 5k/11k a year I also buy the same or more. So has anyone ever been caught. Really? >>
Both are untrue.
You are best to report these transactions on your schedule D form. Why wait for the IRS to discover that you failed to report your sales of coins and then do an audit for three or more years and then have to prove your cost basis to them. Usually the IRS never checks cost basis as long as the sales on schedule D is reported. In my 28 years as a CPA, I have seen the IRS only ask for back up to cost basis only once when sales were reported but almost 60% of the time when sales were NOT reported.
We have been in meetings with the IRS and even though they will not obtain 1099 information from ebay until next year, I am seeing a much more agressive search and collect effort on the part of the IRS in which they are now doing a questionaire of taxpayers including the simple question; "did you make any sales on ebay in the last 3 years, if so please list them.
You never want to perjure yourself with the IRS. If substantial enough in net gain dollars, it could amount to a felony.
Filing a income tax return in itself without reporting ebay sales is a form of underreporting of gross income.
NGC registry V-Nickel proof #6!!!!
working on proof shield nickels # 8 with a bullet!!!!
RIP "BEAR"
<< <i>Opinions please. >>
I think you just admitted tax evasion.
are disabled people with nothing but time on their hands trying to juggle a few coins to make ends meet.
If the Gubbament pushes these people into declaring themselves "businesses" they'll
quickly change their tunes once they find that when all regular business expenses &
deductions, to which these folks ARE entitled to take, ARE taken that basically all these
good folk are guilty of is stimulating the Economy.
Fear has seen many sellers STOP SELLING. This coupled with ALL the BS and CHANGES on
ebay - given the percentages ebay and PayPal TAKE, the COST of mchdse etc, etc - well,
in most cases not many people are making a lot (IF ANY) Profit/ taxable income (capital gain).
The Economy is in the crapper SO BADLY that the average American cannot even begin to grasp
the Reality that The US Gubbamint has screwed up so rayally that basically America does NOT even
belong to (As in OWN) America or Americans. Ask monsterman to chime in on this an boys, you will
certainly be in for some eye opening information, I assure you!
With the National Debt being what it is - (right about HERE I would like to know HOW it came to be -
when, where & HOW did it originate) - the average American hasn't the slightest clue that the USA
has the WORST CREDIT RATING OF ALL. Their answer - keep printing pieces of paper with #s on them that are (in a nutshell) WORTHLESS! The # is so large (this is NOT a direct quote nor is the # correct) that the way it was presented to me lately IS that IF EVERY LIVE AMERICAN - including Infant Babies- were ALL made to pay #$1000 a minute for the next 50 years (just an example because it actually IS much worse) - every minute for the remainder of their lives, we would not even make a dent in this so-called deficit/ debt!
Now, I don't know about all you guys but speaking solely for myself - I WOULD REALLY like to know how this came to be and at what point in time did "x" go so horribly wrong that CAUSED us to go from being the propserous upstart Nation on the planet to so badly in debt that it can never be paid down!
We've gone from the Land of Opportunity - the land of milk & honey to AN ILLUSION with NO MONEY!
So much is wrong, so much has gone wrong that in plain Layman terms, we don't even own our own country RIGHT NOW! CHINA own us! Go figure! If they (China) demand payment, we'll be re-posessed which reminds me of a phrase I heard long ago that went like this ... "We'll take this country over without a shot being fired!"
Now, I have NO DESIRE to turn this into some political thread but it's time we Americans WAKE UP and take our country back froma bunch of incompetent Jack asses who have failed miserably in the "Of, for & BY the People" department!
Corporation that (for example) churn out automobiles, easily 10 TIMES MORE than they cost just 40 years ago - with cars & trucks being used, bought & sold daily, Everywhere, USA can possibly be in need of BAILOUT!? WHAT!!? Executives stuff their pockets (not just the Auto Industry) on the way out the doors, yet scream BAILOUT to whom? The one that NEEDS bailing out MOST! Our BANKRUPT Gubbamint.
This is ludicrous and downright appalling! Instead of DEMANDING ANSWERS it seems most of us have HIA disease, thinking somehow, someone is going to FIX the unfixable. Hell! Let's all et in line & sream BAILOUT!
Slavery has NOT been abolished. Every working stiff is enslaved but only FEW realize it I forget exactly which President proclaimed that we should NOT be allies with ANYONE - but ya know what! HE WAS RIGHT! Had we stayed within ourselves instead of appointing ourselves "Watchdog of the Free World", I KNOW we have the resources to BE self-sufficient. Example - I live in Oilfield country. I personally know of untolled wells that are CAPPED. Under The Rocky Mountains ALONE ( forget OFFSHORE DRILLING) there is enough Oil, untapped, to keep us self-reliant _ TOTALLY self reliant! WE DO NOT NEED ANYONE'S Oil!
It may seem that I have now started a "Rant" when in fact I have not! We Americans have become far too complacent, if not downright FAT & LAZY, trusting the Gubmint that has let us down repeatedly - lying to us, keeping us in the proverbial DARK, way too long!
To address the OP's question. If you keep good records then go ahead and declare yourself "a Business". Take out ALL the deductions TO WHICH YOU ARE ENTITLED! Office Space isn't Free nor are Utilities, computers, printers, cameras, THE INTERNET - INVENTORY. (No need to pad or fabricate #s, I assure you). Take these deductions, establish "basis", the COST of running your Business and keep your tally sheet. The IRS will SOON SEE that they are wasting YET MORE TAXPAYERS' Money by screwing around with the vast Majority of so called sellers that are dealing with basically operating in RED numbers.
Having coins graded is an expense. Brinigng them to auction or selling them outright is an expense. As previously mentioned, with ebay and PayPal TAKING a substantial percentage, trying to make a few bucks to pay expenses - most, if lucky, will soon find that they are just wading/ treading water.
The ones "making profit" are TPGs, Auction houses (ebay) PayPuke. the USPS & wherever you buy shipping supplies (which ebay NOW wants us to provide FREE! Yeah, right! Many sales people would do just fine working on a 10% commission. Example - my Dad made 2% (less than PayPal) but because of WHAT it was that he sold, the man made A LOT OF MONEY before he passed away 1-30-1998.
If you're worried about taxes the do your Homework and do the right thing. In MOST cases your Bottom Line will NOT be what it may APPEAR to be. You spend more than you make - there's NO PROBLEM! Some here that hit a nice lick, for example, turning out 100 08/07 American Silver Eagles - now THEY have just cause to be concerned!
That's all. Call it a rant if you like but that's my two cents worth.
True bigtime "Dealers" know the ropes and do the right thing
Pardon the misspelled words. Spell check is down.
<< <i>deemed a "Business"? >>
<< <i>If so, then declare yourself as such and take all the legitimate expenses as deductions >>
i agree with Boom,The Goverment has mentioned in the past about "looking "into ebay sellers,sooner or later we may have to answer,even if it is a hobby to some and you are breaking even or even making a few $$ you may have to prove it, JMO,mOjO
the_northern_trading_company
ace@airadv.net
I bet you are a democrat.
<< <i>
<< <i>If you buy more than you sell, there is no problem. >>
<< <i>I have never claimed taxes on my ebay sales. Although I am not a dealer and only sell maybe 5k/11k a year I also buy the same or more. So has anyone ever been caught. Really? >>
Both are untrue.
You are best to report these transactions on your schedule D form. Why wait for the IRS to discover that you failed to report your sales of coins and then do an audit for three or more years and then have to prove your cost basis to them. Usually the IRS never checks cost basis as long as the sales on schedule D is reported. In my 28 years as a CPA, I have seen the IRS only ask for back up to cost basis only once when sales were reported but almost 60% of the time when sales were NOT reported.
We have been in meetings with the IRS and even though they will not obtain 1099 information from ebay until next year, I am seeing a much more agressive search and collect effort on the part of the IRS in which they are now doing a questionaire of taxpayers including the simple question; "did you make any sales on ebay in the last 3 years, if so please list them.
You never want to perjure yourself with the IRS. If substantial enough in net gain dollars, it could amount to a felony.
Filing a income tax return in itself without reporting ebay sales is a form of underreporting of gross income. >>
Does the IRS really expect anyone to document/remember casual sales from 3 years ago?
<< <i>
<< <i>deemed a "Business"? >>
<< <i>If so, then declare yourself as such and take all the legitimate expenses as deductions >>
i agree with Boom,The Goverment has mentioned in the past about "looking "into ebay sellers,sooner or later we may have to answer,even if it is a hobby to some and you are breaking even or even making a few $$ you may have to prove it, JMO,mOjO >>
I believe that you are entiitled to all of those deductions as a part of your cost basis whether you are a business or not. As a hobbyist your deductible expenses are of course less than for a business. If you return a coin as a hobbyist you generally can't claim any expenses for that whereas a business can.
<< <i> I was told to make sure all of my deposits in my bank accts were less than $9,000 a pop and I do this also with my paypal withdraws. I heard somewhere paypal could send you year end statements of sales? >>
Where do you people come up with this bs/nonsense? If you get audited, an IRS examiner could go through EVERY deposit to your checking account and if it doesn't appear to be a normal deposit like from a direct payroll deposit then yer gonna have some splainin to do.
But remember there are a lot of advantages to claim it as a business as you will get a write off of all your cost like the cost of running an auction on ebay can be written off.
When it comes to taxes, I suggest you seek out a professional.
PS. I will undercut Oreville's fees by 10%
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
<< <i>Should be easy to print out a report from Ebay showing you exactly what you have sold and what you have bought and if you bough more that you sold, ( I think most of us are in that category even without knowing it) then you are good.
But remember there are a lot of advantages to claim it as a business as you will get a write off of all your cost like the cost of running an auction on ebay can be written off. >>
When you sell as a hobbyist on eBay your profit or loss is for each coin and for each coin you must have a buy sell cycle. If you buy a coin from me on the BST board for $150 plus $7 shipping, your cost is $157. If you sell it on eBay your gross is the final price plus whatever you charge for SH&I. Your costs will then be the $157 any eBay/PP fees and any shipping that you pay to get it to the new owner. The rest is taxable profit. If you buy another coin from me but don't sell it you can't deduct the cost of it.
There's some bum info in this thread. If you make a profit on a stock purchase, you owe tax. Coins are no different as an investment. Declaring yourself as a business isn't the issue.
Oh, Boom. About your rant, you are right about most of it.
I knew it would happen.
Is someone considered disabled if they have a dead wife that isn't actually dead?
Self Indulgence | Holey Coins | Flickr Photostream
<< <i>Somewhat related question...
Is someone considered disabled if they have a dead wife that isn't actually dead? >>
They are dishonest, The wife is disabled
<< <i>Somewhat related question...
Is someone considered disabled if they have a dead wife that isn't actually dead? >>
For tax purposes I'm not sure, but I'd definitely let this person park wherever he wants.
Sean Reynolds
"Keep in mind that most of what passes as numismatic information is no more than tested opinion at best, and marketing blather at worst. However, I try to choose my words carefully, since I know that you guys are always watching." - Joe O'Connor
<< <i>This is a prime reason why the IRS will focus more on ebay in the future than it has in the past.
There's some bum info in this thread. If you make a profit on a stock purchase, you owe tax. Coins are no different as an investment. Declaring yourself as a business isn't the issue.
Oh, Boom. About your rant, you are right about most of it. >>
However as a business you usually get more deductions than you do as a hobbyist so thats smoething to keep in mind if you are a frequent eBayer.
The day is coming when there will be a great cry.
It's my understanding that in order to take a business deduction, you have to meet certain tests to qualify as a business.
I knew it would happen.
If you are a hobbyist, you don't want to take business deductions. If you are in business to make money selling coins, it's best to recognize that fact and take whatever deductions that you are entitled to take. Either way, you are crazy if you don't have good records.
I knew it would happen.
<< <i>can you get caught not paying taxes >>
As one who spent many hours wrestling with Schedules C, SE, Form 8829 and the rest of it for years, I can assure those reading this that there is no escape. All it will take is an envelope from PayPal with a 1099 inside next year, or whenever, to make tax puppets out of many eBay sellers.
my early American coins & currency: -- http://yankeedoodlecoins.com/
<< <i>There's some bum info in this thread. If you make a profit on a stock purchase, you owe tax. Coins are no different as an investment. Declaring yourself as a business isn't the issue.. >>
And if you lost money on every transaction and you didn't take a deduction, then the IRS probably owes you money. And that's why they'll never do anything about it.
If you ask me inflation should be deductible too. That'd teach those crooks to dilute my fiat money.
You never know when Nazi fascist pigs will come after you. LOL
<< <i> Does the IRS really expect anyone to document/remember casual sales from 3 years ago? >>
Absolutely; and that is where the IRS will get to collect big time if you are not ready with good documentation.
The google ad on the top has this instead of a coin dealership ad:
<< <i>TaxMasters TaxMasters CPA's and tax preparers personal and business tax experts www.TxmStr.com/IncomeTax >>
<< <i>Weird!!!
The google ad on the top has this instead of a coin dealership ad:
<< <i>TaxMasters TaxMasters CPA's and tax preparers personal and business tax experts www.TxmStr.com/IncomeTax >>
>>
Wow, what a coincidence! And all along I though the Google ads that appear are based on keywords within the thread!
An individual on the other hand, would be treated similarly except that losses would only be deductible to the extent of other gains (subject to the $3,000 limit for capital losses if losses exceed gains) and ANY (NET) gains would need to be declared as income.
There would be no deductions for "normal business expenses" to offset net realized gains and their inventory (to the extent it might - on the other hand be - for businesses) would not be depreciable and subsequently deductible.
btw: "ww.TxmStr.com/IncomeTax"
P.S. the fewer people who are working and paying taxes, the harder they'll come after people who are!
edit to add : ... and in the poor house
``https://ebay.us/m/KxolR5
<< <i>The IRS (and your state) don't expect you to remember anything, they expect you to document everything. Many states expect you to pay sales tax ("use tax") on anything you buy out of your home state. The people who will get killed are those who buy $20 coins from the US Mint and "make" 70's. You buy a coing for $20 and sell it for $2000, your base is $1980. Of course you made big bucks, you just don't get to keep it all.
P.S. the fewer people who are working and paying taxes, the harder they'll come after people who are! >>
Yeah, I know you need to document your bases/purchases. I wonder how many can produce receipts for purchases they made more than 6 months ago if they have an insurance claim.