Taxes

[mrrosado]

Well its tax time. How do I report purchases and sales made through realcent.org, ebay, and all those kind of things. Is this considered an investment or a purchase of an item? How do I track trades? I asked my accountant but he has never dealt with metals before. Anybody know the answers to these questions?

[NHsorter]

I thought you dudes did not pay taxes? My friends dad is a pastor and he pays no property tax on his many palaces.

[theo]

It sounds like you are dealing with capital gains tax. I believe you owe this tax when coins are sold. The tough part is establishing a cost basis or the original price paid for the coins. Ebay sends a confirmation email whenever you buy coins, which can be used to support the cost basis. I keep any seller receipts whenever I buy on ebay just in case. RC sales/purchases may be harder to document depending on how specific the private messages were. Honestly I wouldn't worry too much unless your capital gains run into the thousands.

I've often wondered whether the IRS would be willing or able track and/or supoena to internet activity to track down capital gains revenue. Probably not yet but perhaps in the not-too-distant future.

[TXBullion]

Well its tax time. How do I report purchases and sales made through realcent.org, ebay, and all those kind of things. Is this considered an investment or a purchase of an item? How do I track trades? I asked my accountant but he has never dealt with metals before. Anybody know the answers to these questions?

The first thing before anything, find a new accountant

[Sterling Silver]

Well its tax time. How do I report purchases and sales made through realcent.org, ebay, and all those kind of things. Is this considered an investment or a purchase of an item? How do I track trades? I asked my accountant but he has never dealt with metals before. Anybody know the answers to these questions?

The first thing before anything, find a new accountant

Very wise advice, TXBullion.

[Cold-Silver]

Well its tax time. How do I report purchases and sales made through realcent.org, ebay, and all those kind of things. Is this considered an investment or a purchase of an item? How do I track trades? I asked my accountant but he has never dealt with metals before. Anybody know the answers to these questions?

The first thing before anything, find a new accountant

Very wise advice, TXBullion.

+1 That's accounting 101 kind of issues.

[theo]

Well its tax time. How do I report purchases and sales made through realcent.org, ebay, and all those kind of things. Is this considered an investment or a purchase of an item? How do I track trades? I asked my accountant but he has never dealt with metals before. Anybody know the answers to these questions?

The first thing before anything, find a new accountant

That is a good point. However, the first thing any accountant will ask is, what is the cost basis? If you report a sale and you can't establish a cost basis then I'm pretty sure capital gains taxes would be levied against the entire sale amount.

[Thogey]

You just pencil whip a reasonable invoice that shows a reasonable profit. File the correct form, pay some tax.

The IRS is not going to bother you unless you are totally blowing them off or running more than 5 figures a month through your bank account without filing.

What kind of accountant doesn't know how to handle this?

[mrrosado]

I thought you dudes did not pay taxes? My friends dad is a pastor and he pays no property tax on his many palaces.

The Church does not pay taxes. Individual priests do. In New York we have to pay city, state and federal taxes just like everybody else.

[mrrosado]

It sounds like you are dealing with capital gains tax. I believe you owe this tax when coins are sold. The tough part is establishing a cost basis or the original price paid for the coins. Ebay sends a confirmation email whenever you buy coins, which can be used to support the cost basis. I keep any seller receipts whenever I buy on ebay just in case. RC sales/purchases may be harder to document depending on how specific the private messages were. Honestly I wouldn't worry too much unless your capital gains run into the thousands.

I've often wondered whether the IRS would be willing or able track and/or supoena to internet activity to track down capital gains revenue. Probably not yet but perhaps in the not-too-distant future.

We need to be honest. Last year it took me two hours to do my taxes. They probably will never want to audit me since I'm very small fish to them. I think I have about $500 in silver. Maybe $2 in gold and maybe $60 in copper.

[mrrosado]

Well its tax time. How do I report purchases and sales made through realcent.org, ebay, and all those kind of things. Is this considered an investment or a purchase of an item? How do I track trades? I asked my accountant but he has never dealt with metals before. Anybody know the answers to these questions?

The first thing before anything, find a new accountant

LOL my accountant is about 89 years old, does not use the internet much and has never had clients invest in metals. He does my taxes for free so I'm not complaining. He told me to bring receipts of buy and sell prices. I didn't sell much its mostly purchases. Thanks for the advice all. I guess I need to dig through my computer files and figure out where I bought this stuff. I"m going to hold my stuff until I'm old. I only sold a little of it. For example I had an account with some company but they wanted to charge fees so I got out of that mess. I'll probably end up donating it to some Church by the time I'm old.

[NHsorter]

I thought you dudes did not pay taxes? My friends dad is a pastor and he pays no property tax on his many palaces.

The Church does not pay taxes. Individual priests do. In New York we have to pay city, state and federal taxes just like everybody else.

OK, my bad. I don't know the exemptions. The guy I know must just be gaming the hell out of the system. Must have his mansion and his Winnipesaukee lake house on his churches books.

huh.. that sounds worse than it really is. To be fair, he made a bunch of money as a businessman before he got into the church thing. So it's not like he is hosing people to live like a king. But I know that he is not paying any property taxes, so in that respect, probably gaming the system. Sorry for my ignorance and my sorta off topic rambling. I don't have a problem with Churches not paying taxes, just the people that take advantage of such rules.