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Let's discuss this issue.

Do you keep track of what you paid for PMs and coins?

I actually changed my vote.

I do have a folder with proof of payment. Just in case.

I admit I am meticulous and keep solid records of everything purchased.

I have a ledger to document my sold and traded items. This way I can audit it from time to time to see if I'll making any profit or losing money over time. For the items I purchase I have it all down in a Excel spread sheet, which helps me to cost average down when ever the opportunity presents its self.

What is the cost basis for an inheiritence?

IdahoCopper wrote:What is the cost basis for an inheiritence?

I think it's up to $5 million, Then there's a 35% hit after that.

No Thogey, what is the >cost< ??

IdahoCopper wrote:No Thogey, what is the >cost< ??

It was a gift, so your cost was zero.

I'm not a tax guy, but if it's a large enough amount to worry over, the estate could probably sell on your behalf, and use the estate's cost basis to reduce or eliminate the tax burden.

It's actually a "step up" in basis to the value of the coins at the time of inheritance. There is no tax consequence at the time of inheritance. When you go to sell, your gain or loss is determined by the difference in the selling price and the value at the time you inherited it.

IdahoCopper wrote:No Thogey, what is the >cost< ??

As far as the IRS is concerned.

The >cost< is 5 million.

Consult your accountant.

I chose the middle option. I did record my purchases, from the beginning, but I lost the list... twice So I only have a record of my last two purchases now.

inflationhawk wrote:It's actually a "step up" in basis to the value of the coins at the time of inheritance. There is no tax consequence at the time of inheritance. When you go to sell, your gain or loss is determined by the difference in the selling price and the value at the time you inherited it.

Good point. I forgot about the "step up".

Back to the topic at hand, I keep cost records and pay any taxes due...but only if I can't find a way to offset them. One nice thing about sorting for silver is having the ability to mix and match what you sell to meet a target sales price.

If you aren't keeping track of your "buy prices" and "sell prices" and you get audited you can bet the auditor will pick the WORST CASE SCENARIO for everything. So you are better off being meticulous!

barrytrot wrote:If you aren't keeping track of your "buy prices" and "sell prices" and you get audited you can bet the auditor will pick the WORST CASE SCENARIO for everything. So you are better off being meticulous!

Do you need receipts for everything? My coin shop doesn't give receipts.

scyther wrote:

barrytrot wrote:If you aren't keeping track of your "buy prices" and "sell prices" and you get audited you can bet the auditor will pick the WORST CASE SCENARIO for everything. So you are better off being meticulous!

Do you need receipts for everything? My coin shop doesn't give receipts.

No receipts sounds like they might not be reporting/charging all the sales tax.

AGgressive Metal wrote:

scyther wrote:

barrytrot wrote:If you aren't keeping track of your "buy prices" and "sell prices" and you get audited you can bet the auditor will pick the WORST CASE SCENARIO for everything. So you are better off being meticulous!

Do you need receipts for everything? My coin shop doesn't give receipts.

No receipts sounds like they might not be reporting/charging all the sales tax.

I don't think they have to charge sales tax here (Illinois). Do most places usually give receipts?

barrytrot wrote:If you aren't keeping track of your "buy prices" and "sell prices" and you get audited you can bet the auditor will pick the WORST CASE SCENARIO for everything. So you are better off being meticulous!

And who will Aver, under penalty of perjury, that the "selected" scenario is absolutely true and correct? The auditor?

Thank you for all the insights.

IdahoCopper wrote:

barrytrot wrote:If you aren't keeping track of your "buy prices" and "sell prices" and you get audited you can bet the auditor will pick the WORST CASE SCENARIO for everything. So you are better off being meticulous!

And who will Aver, under penalty of perjury, that the "selected" scenario is absolutely true and correct? The auditor?

Thank you for all the insights.

They don't have a big court hearing if you are audited unless you are going to jail for it.

It's just your word against nothing. Naturally everything you say is assumed to be true and correct when you are being audited, but if you don't have PROOF they go with what they go with. That's the way it works.

I keep all my receipts and track my cost basis in a spreadsheet. Thankfully we don't have capital gains tax in my state, but I figure better safe than sorry.

barrytrot wrote:

IdahoCopper wrote:

barrytrot wrote:If you aren't keeping track of your "buy prices" and "sell prices" and you get audited you can bet the auditor will pick the WORST CASE SCENARIO for everything. So you are better off being meticulous!

And who will Aver, under penalty of perjury, that the "selected" scenario is absolutely true and correct? The auditor?

Thank you for all the insights.

They don't have a big court hearing if you are audited unless you are going to jail for it.

It's just your word against nothing. Naturally everything you say is assumed to be true and correct when you are being audited, but if you don't have PROOF they go with what they go with. That's the way it works.

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?

Thogey wrote:Let's discuss this issue.

Do you keep track of what you paid for PMs and coins?

yes...in two ways, on my email client, for legal purposes, in case anything goes awry...I segregate all dealings in a separate folder.

Then, when I receive rolls, I inspect and weigh every coin, than I handwrite in a special inventory notebook, ALL silver...THAN, I make it safed....then twice a year, I re-inventory.

also for all 95% copper pennies, as well as "bricks" of nickels, ($100 FV boxes of 75/25's)

I always believe in matters of personal business, one should TRY and be precise. Nice survey Thog....i'm going to read the rest of the responses, have a great Sunday, neil

I have little to say except that I know I need to be more organized. It's been a downfall since my mother first asked me to put away the lincoln logs when I was 5.

That said, given some time, I could document everything I do. I have bags of receipts from auctions, pawn and thrift stores, coin shops, etc.

OneBiteAtATime wrote:I have little to say except that I know I need to be more organized. It's been a downfall since my mother first asked me to put away the lincoln logs when I was 5.

That said, given some time, I could document everything I do. I have bags of receipts from auctions, pawn and thrift stores, coin shops, etc.

I'm presently going through my Dad's things. I'm finding papers, receipts envelopes are far back as the early 80s in the shed outside. Some boxes and bags have paper from the 60s. I got a 10 yard dumpster in the driveway, its 1/2 full after a day & half. Its 104 to 108 here in Tucson. This is way too much fun.

Please take care of your rotting pile of papers before you get too old and infirm, so your heirs do not have to deal with it.

Been through the same thing, several times. It's no fun. Hang in there.

I keep paper trails of everything.