Okay,let the nut kicking begin !

[coolpix9]

After thinking about selling some 40% halves for weeks now, I broke down and pulled the trigger. I sold 3160 halves for $7063. I know some of you would never dream of selling but when I got started doing this, my goal was to make a good profit. I didn't touch my 90% stuff and I didn't put much of a dent in my 40%ers.
For those of you coin collectors,my stash was not smelted but sold to a retailer who plans to resell them.
Now all I need to do is refill the holes in my SDB with more silver at face value and play the game again. Cheers, Jim

 

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[Silver crazy]

I think you did fine, you can't keep everthing forever, you made good profit. Now go rebuild the stack. Good Luck. Dennis.

 

[AGCoinHunter]

Nothing wrong with taking profits. $2.23 each is a good price to get. Actually as a collector I wish you would have sent these off to the smelter, makes mine more rare...

The thing that bothers me is you said you sold 3160 halves and didnt put much of a dent in your pile. I cant wrap my small brain around that...please stop messing with my pea brain!

 

[coolpix9]

SORRY ABOUT THAT !

 

[thurmownator]

Nicely done there Jim. You sold at a good price and made a hefty profit. Plus you hung on to your 90%ers.

Nothing wrong with any of that.

Kudos.

 

[mts]

So what are you going to tell the tax man....?

 

[coolpix9]

I filled out the proper form. Hopefully there will be a accidental loss of paperwork but I am not counting on it. JP

 

[obediah]

I filled out the proper form. Hopefully there will be a accidental loss of paperwork but I am not counting on it. JP

You'll HAVE to declare it as income unless you decide to protest & not even file- pay taxes anymore.

Wish could find local dealer who pays that much, I've narrowed my life down to basics can & do live on a few K a year and the taxes do not kick in till you make over about 8600 so I'm safe will stay way under that figure lest get real lucky finding Silver this year- so far it don't look too good either finds are way down.

 

[jrf30]

Good job Jim.

I too would sell my 40% halves off if I decided to sell anything. Keep the 90% ones. I don't find enough to sell though. Just collect. YOu got a good price though, plus you opened up a lot of space for other things in the SDB.

I thought the paperwork was only when you sold $10,000 in the same year? that is what bulliondirect told me. If I sell less than $10K culmulatively for the year, they don't report paperwork.

Keep finding them. You're doing great!

 

[coolpix9]

Their computer kicked out the form. I was halfway out the door. The big cheese said I had exceeded the weight of silver clause and that is why the form was generated. I had purposely gone in with less than 10K in value but I guess I learned something new. JP

 

[mts]

I was just joking about the tax man but I guess I opened a nice can of worms. Having never sold any precious metals myself, and being a fairly honest guy, I've been thinking recently about what I would do if I sold some silver. I pay my taxes as required and don't mind doing it. But there is a part of all of us that naturally wonders about the implications of selling some silver on the side and not reporting it. Make no doubt about it, if you don't report it and the IRS finds out you are in serious doo doo. But that doesn't seem to stop some people from taking the chance anyway. So I'm not here to judge anyone who doesn't report it. That's their perogative.

That short rant brings me to an interesting point. JP got a really good price at 2.23 per half. He may have even shopped around quite a bit before pulling the trigger. However, if he was inclined to NOT pay taxes then that 2.23 is actually not a good deal at all. Assuming that he will pay around 25% tax on the difference between his selling price and purchase price, that turns out to be about 43 cents per half ((2.23-0.50)*0.25=0.43). This brings his actual selling price down to $1.80 each which isn't nearly as good. Given that he paid only 50 cents for the half (plus a whole lot of time) he may still consider this to be a reasonable profit. But it goes to show that anyone looking to do this under the table might be better served by finding a private individual for a cash transaction of much less than 2.23. In fact, getting an anonymous, cash price of anything over $1.80 results in a higher profit (at the expense of not being able to sleep as easy at night).

So I'm not advocating not reporting this on your taxes. But for those of you who are inclined to try and do this under the table it seems reasonable to consider that a private buyer offering less can actually be better than a dealer offering more who will force you to report it on your taxes.

I'd probably report it either way so what JP did would be my course of action as well.

 

[ArkieBassMan]

If you report it as income, then by all means take all the deductions you can find. Any expenses you incur while CRHing (bags, fees, etc) would be 100% legally deductible as well as your mileage from both picking up and dumping.

 

[Hi Ho Silver!]

Anyone will sell when the time is right for them. Nothing wrong with that.

 

[fistfulladirt]

Nice job Jim! Personally, who cares if the 40's melt? Not me! ffd

 

[STDevil]

I did not know you had to pay tax. Once, when I bought one half dollar at the coin store, the guy behind the counter said I was just trading money for money.

 

[Electronova]

That is a lot of silver halves. To me it doesn't seem like you got that good of a price ($15.11 per oz), but then again you were selling a lot so it would be a little difficult to get a higher price. I just sold 2 rolls of silver quarters the other week on craigslist at $17.92 per oz, so for anybody looking to sell, may I suggest selling in smaller portion on craigslist, thus getting a higher price and staying tax free

I have been CRHing pennies for a couple years now, and tomorrow I am picking up my first box of halves, so wish me luck! (or hope that I miss some, haha)

 

[JD-GA]

If you report it as income, then by all means take all the deductions you can find. Any expenses you incur while CRHing (bags, fees, etc) would be 100% legally deductible as well as your mileage from both picking up and dumping.

You are only correct here if you have a business license to buy and resell coins. You cant deduct jack squat on your taxes for making a profit with a hobby. Let me rephrase that "you cant legally deduct jack squat" unless you have a business license allowing you use tax deductions while doing business. Trust me i just learned all about this the hard way.

 

[gotin]

If you report it as income, then by all means take all the deductions you can find. Any expenses you incur while CRHing (bags, fees, etc) would be 100% legally deductible as well as your mileage from both picking up and dumping.

You are only correct here if you have a business license to buy and resell coins. You cant deduct jack squat on your taxes for making a profit with a hobby. Let me rephrase that "you cant legally deduct jack squat" unless you have a business license allowing you use tax deductions while doing business. Trust me i just learned all about this the hard way.

My understanding was that you pay tax on the profit when selling coins. For example you buy a Morgan for $10 and sell for $15, you pay taxes on the $5 you made.
In the case of roll hunting, the cost of the coin is the face value + the cost of actually finding it - driving around, buying wraps/bags, fees for ordering/depositing, etc.
Am I missing something?

 

[jim4silver]

If you report it as income, then by all means take all the deductions you can find. Any expenses you incur while CRHing (bags, fees, etc) would be 100% legally deductible as well as your mileage from both picking up and dumping.

You are only correct here if you have a business license to buy and resell coins. You cant deduct jack squat on your taxes for making a profit with a hobby. Let me rephrase that "you cant legally deduct jack squat" unless you have a business license allowing you use tax deductions while doing business. Trust me i just learned all about this the hard way.

Here is what an HR block site says about hobby expense deductions.

http://www.hrblock.com/taxes/tax_ti.../hobby_expenses.html?ttiptitle=Hobby Expenses

Jim

 

[TxTim]

I figure if you take the proceeds from your sale and plow that capital back into your efforts by buying more coins to search that a taxable event never occurred.
Prove me wrong!