Help with Tax question: I bought a lot and I sold a lot, but what I sold was to a dealer and they s
barrytrot
Posts: 759 ✭
Every year I buy and sell, probably like everyone else here.
So far I have never sold more than I bought
I'm conscientious about my taxes, and pay appropriately each year. I've never paid on "coins" because they are always, "loss". I've never even put them on there, just like I don't write down the jewelry I buy from wife as it is all "loss" and not of the deductible kind.
This year (2011) will be the same, more bought than sold.
However, there is 1 wrinkle. I sold a lot to a dealer that says they send out 1099's (or something) to those they buy from.
My question is do I just ignore this? Put it on my taxes with an appropriately sized negative amount?
Please help as I am now sort of lamenting selling to this particular dealer when I probably could have received a similar price elsewhere without any issue.
So far I have never sold more than I bought
I'm conscientious about my taxes, and pay appropriately each year. I've never paid on "coins" because they are always, "loss". I've never even put them on there, just like I don't write down the jewelry I buy from wife as it is all "loss" and not of the deductible kind.
This year (2011) will be the same, more bought than sold.
However, there is 1 wrinkle. I sold a lot to a dealer that says they send out 1099's (or something) to those they buy from.
My question is do I just ignore this? Put it on my taxes with an appropriately sized negative amount?
Please help as I am now sort of lamenting selling to this particular dealer when I probably could have received a similar price elsewhere without any issue.
0
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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
which 1099 form is there to use?
<< <i>which 1099 form is there to use? >>
the repeal only affected 1099s for "sales" over $600. It did not affect the already in existence requirement for 1099's on payments for "services."
No Way Out: Stimulus and Money Printing Are the Only Path Left
Steve
My Complete PROOF Lincoln Cent with Major Varieties(1909-2015)Set Registry
No Way Out: Stimulus and Money Printing Are the Only Path Left
<< <i>Every year I buy and sell, probably like everyone else here.
So far I have never sold more than I bought
I'm conscientious about my taxes, and pay appropriately each year. I've never paid on "coins" because they are always, "loss". I've never even put them on there, just like I don't write down the jewelry I buy from wife as it is all "loss" and not of the deductible kind.
This year (2011) will be the same, more bought than sold.
However, there is 1 wrinkle. I sold a lot to a dealer that says they send out 1099's (or something) to those they buy from.
My question is do I just ignore this? Put it on my taxes with an appropriately sized negative amount?
Please help as I am now sort of lamenting selling to this particular dealer when I probably could have received a similar price elsewhere without any issue. >>
Did you volunteer to give a Social Security number or Tax ID number? Without it, the dealer cannot filed a 1099.
TRUTH
And he is talking 1099 for sales, not services. I am aware there is a 1099 for services, but he is selling coins to a dealer, not consigning them. The dealer is reporting sales on what 1099 ??
Brokerages report on a 1099, but 1, those are stock transactions, and 2 that is for brokering. Neither apply here.
So, I'm curious what 1099 this dealer plans to use.
<< <i>The OP says he's working on losses, so he doesn't report it.
And he is talking 1099 for sales, not services. I am aware there is a 1099 for services, but he is selling coins to a dealer, not consigning them. The dealer is reporting sales on what 1099 ??
Brokerages report on a 1099, but 1, those are stock transactions, and 2 that is for brokering. Neither apply here.
So, I'm curious what 1099 this dealer plans to use. >>
It would have to mistakingly be the 1099 the dealer uses for "services" since there is not one for sales.
Suffering a loss on a sale does not waive the IRS requirement to report the income on the tax return. That is why they are called income tax forms and not profit tax forms. It is up to the filer to use his purchase documentation to offset the income accordingly when filling out the tax forms. If he suffered a loss, chances are it will reduce his tax liability.
No Way Out: Stimulus and Money Printing Are the Only Path Left
<< <i>Every year I buy and sell, probably like everyone else here.
So far I have never sold more than I bought
I'm conscientious about my taxes, and pay appropriately each year. I've never paid on "coins" because they are always, "loss". I've never even put them on there, just like I don't write down the jewelry I buy from wife as it is all "loss" and not of the deductible kind.
This year (2011) will be the same, more bought than sold.
However, there is 1 wrinkle. I sold a lot to a dealer that says they send out 1099's (or something) to those they buy from.
My question is do I just ignore this? Put it on my taxes with an appropriately sized negative amount?
Please help as I am now sort of lamenting selling to this particular dealer when I probably could have received a similar price elsewhere without any issue. >>
Tell you what you do. Sell the lot to him anyway. If he does 1099 you, even though that law was repealed and wasn't to go into effect until next year, go back and buy something from him, and tell him you 1099 dealers you buy from.
Fair is fair!
1099 B's have been required for over 20 yrs at least when Coin Dealers purchase large amounts that fall into certain categories. It has nothing to do with the recent 1099 repeal. If the Coin Dealer informs you that they will issue a 1099-B regardless, then they are covering their bottoms regards other regulations. Such as Anit-money laundering requirements under the Patriot Act. My advice is to sell to another Dealer if they are not required to File it. The IRS follows every 1099 submitted to them. I'm not suggesting you dodge any taxes you owe, but why create more paperwork for yourself that isn't needed.
Here are the only items listed by the IRS in Rev. Proc. 92-103 as requiring submission for Form 1099-B, and the minimum threshold quantities that must be sold in a single or related transactions before the form must be filed:
Item Minimum Fineness Minimum Reportable Amount
Gold Bars 0.995 Any size bars totaling 1 kilogram (32.15 troy oz.) or more
Silver Bars 0.999 Any size bars totaling 1,000 troy oz. or more
Platinum Bars 0.9995 Any size bars totaling 25 troy oz. or more
Palladium Bars 0.9995 Any size bars totaling 100 troy oz. or more
1 oz. Gold Maple Leaf as minted 25 1-oz. coins
1 oz. Gold Krugerrand as minted 25 1-oz. coins
1 oz. Gold Mexican Onza as minted 25 1-oz. coins
US 90% Silver Coins as minted Any combination of dimes, quarters, or half dollars totaling $1,000 face value or more
If an item is not on this list, sales of it does not need a Form 1099-B to be filed, no matter how large the quantity
I know I just mailed a big fat check to the IRS and state of NC, so i have no sympathy for those that avoid the system
<< <i>if you pay your taxes like you suppose too, it shouldn't matter.
I know I just mailed a big fat check to the IRS and state of NC, so i have no sympathy for those that avoid the system >>
I'm not trying to avoid the system.
However, understanding the system is not entirely easy when it comes to "coins".
See the above posts and you will see 4 or 5 completely different opinions on how it works!
I'm just trying to be rightly informed so that I know how to proceed.
<< <i>I'm just trying to be rightly informed so that I know how to proceed. >>
Treat all income as taxable unless IRS requirements or a qualified tax professional tell you differently. Forum members will probably not volunteer to represent you in an audit.
<< <i>Do any one knows that PayPal still required to send out 1099 to IRS for 2011 if a buyer meets the 200 transactions in a year and over 20K in total? Thanks. >>
Yes, and based on the numbers provided, the IRS will probably want to see some prior year figures for high income sellers.
No Way Out: Stimulus and Money Printing Are the Only Path Left
1099s should be irrelevant if you're reporting correctly--other than they save you time looking things up when you do your taxes. I welcome the 1099 law so long as they are coming to me and I don't have to send them out. I believe that if someone sends a 1099 in, you always get a copy of it.
--Jerry
<< <i>
<< <i>if you pay your taxes like you suppose too, it shouldn't matter.
I know I just mailed a big fat check to the IRS and state of NC, so i have no sympathy for those that avoid the system >>
I'm not trying to avoid the system.
However, understanding the system is not entirely easy when it comes to "coins".
See the above posts and you will see 4 or 5 completely different opinions on how it works!
I'm just trying to be rightly informed so that I know how to proceed. >>
I probably should have posted what I usually post.
Do not ask a message board, ask a tax professional.
However, I would look into the necessity of you having to report a net losses on the year since I don't think losses can be taken off unless they are offset by profits.
Still, you need to ask a professional. don't listen to me or other people who you know nothing of their tax backgrounds.
<< <i>
I probably should have posted what I usually post.
Do not ask a message board, ask a tax professional.
>>
I think Ms. is completely right. I'd scan the IRS website and if you still have questions talk to a professional. I'd be tempted to throw in my two cents, but when it comes to tax law, it is confusing, and I don't want you to have the wrong info!