Do You Record Your Cost Basis?

[barrytrot]

In the end >somebody< signs a 1040 form, attesting under penalty of perjury that the submitted info is TRUE. Would you sign a 1040 KNOWING the info was false, because the auditor assumed, and made up numbers out of thin air?

"Know is true" means you have records of what happened. In which case you are covered, of course.

"Think is true" is what happens when you don't have records.

Think != Know.

And Pay is what you will do.

[IdahoCopper]

In the end >somebody< signs a 1040 form, attesting under penalty of perjury that the submitted info is TRUE. Would you sign a 1040 KNOWING the info was false, because the auditor assumed, and made up numbers out of thin air?

"Know is true" means you have records of what happened. In which case you are covered, of course.

"Think is true" is what happens when you don't have records.

Think != Know.

And Pay is what you will do.

Yeah, I know. It is better to shoot yourself in the head than to argue with the IRS, America's Gestapo.

[barrytrot]

I'm not sure I would choose that path, but yes, you are arguing with "the wall" and just like in tennis the wall always wins eventually

[silverflake]

So, I have receipts on darn near every PM I have ever bought. Let's say in the future I decide to sell a portion (just saying...), How do I know which receipts to use to report for taxes? I have been doing this since 1991. The price difference on some of the same things I bought in 1993 is way different from the same thing I bought last week. just wondering. Seems like it may become a big headache.

[barrytrot]

So, I have receipts on darn near every PM I have ever bought. Let's say in the future I decide to sell a portion (just saying...), How do I know which receipts to use to report for taxes? I have been doing this since 1991. The price difference on some of the same things I bought in 1993 is way different from the same thing I bought last week. just wondering. Seems like it may become a big headache.

Assuming you have "similar items", like 100 rolls of mercs, you can choose WHICH you sell each time.

i.e. you have:

Found 1 roll searching boxes: Cost basis 10 cents each
Bought 10 rolls for $1 per coin: Cost basis $1 each

So if you sell a roll you can choose to sell your "10 cents" roll or one of the $1 rolls. Naturally you can choose each only the correct number of times, but it is your choice which to "match".

[barrytrot]

And the choice of "which to match" also could be based on the TIME HELD of the item to alter the impact of long term or short term gains.

[cesariojpn]

As someone once said: "If I tallied the cost, i'd kill myself. If my wife finds out, she'll be the one doing it."

This was in relation to Model Trains BTW.

[Dave]

I need to keep track of things. I hope to start soon, maybe as my 58th birthday promise to myself.

[jacksonryne]

Quite new to the game of silver. Been buying only for a few months. The only real reason I got involved was to help teach my ten-year old son the value of money, precious metals, etc. I have no plans to ever sell, but to simply pass my silver on to my two sons. Do I need to keep a record of my purchases in this case?

Thanks so much, I've learned a ton in here the last few months,

[barrytrot]

Quite new to the game of silver. Been buying only for a few months. The only real reason I got involved was to help teach my ten-year old son the value of money, precious metals, etc. I have no plans to ever sell, but to simply pass my silver on to my two sons. Do I need to keep a record of my purchases in this case?

Thanks so much, I've learned a ton in here the last few months,

Two things to consider:

1. "Plans" and "What really happens" are often two different things.

2. The tax laws regarding "inheritance" get tighter and tighter all the time. If you live long enough there might not be any exempt inheritance at all. And if not then your sons will have to use your cost basis and if you are dead you can guarantee that the IRS agent will hose you posthumously if you don't have proper records.

[RichardPenny43]

Quite new to the game of silver. Been buying only for a few months. The only real reason I got involved was to help teach my ten-year old son the value of money, precious metals, etc. I have no plans to ever sell, but to simply pass my silver on to my two sons. Do I need to keep a record of my purchases in this case?

Thanks so much, I've learned a ton in here the last few months,

Two things to consider:

1. "Plans" and "What really happens" are often two different things.

2. The tax laws regarding "inheritance" get tighter and tighter all the time. If you live long enough there might not be any exempt inheritance at all. And if not then your sons will have to use your cost basis and if you are dead you can guarantee that the IRS agent will hose you posthumously if you don't have proper records.

Don't listen to Barry.
He's a mad man, read his signature.

Keep calm and hoard on!