Tax?

[usandthem]

Hey, folks I'm new here. I was just wondering how you figure taxes on PM when you sell. Thanks.

 

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[brendan1414]

you dont...

 

[savant365]

Keep it under $600 per transaction and don't worry about it

 

[jim4silver]

Your taxable profit would be what you get when you sell, minus what you paid for it. The difference is taxable as profit. If you sell for a loss you might be able to claim that depending on certain factors.

Bad advice on here from people telling you not to pay it. If someone doesn't want to pay it, that is up to them. But telling others to not pay is not giving sound advice.

Most coin stores/pawn shops require ID when you sell to verify who you are in case the stuff is stolen. Although they don't have to file a 1099 unless certain threshold amounts of PMs are sold, they still have your info on file on what you got paid and for what item. Who knows what agencies might have access to that information?

You show your profits or losses on your tax return on a schedule D form (like for stock profits).

Jim

 

[savant365]

Your taxable profit would be what you get when you sell, minus what you paid for it. The difference is taxable as profit. If you sell for a loss you might be able to claim that depending on certain factors.

Bad advice on here from people telling you not to pay it. If someone doesn't want to pay it, that is up to them. But telling others to not pay is not giving sound advice.

Most coin stores/pawn shops require ID when you sell to verify who you are in case the stuff is stolen. Although they don't have to file a 1099 unless certain threshold amounts of PMs are sold, they still have your info on file on what you got paid and for what item. Who knows what agencies might have access to that information?

You show your profits or losses on your tax return on a schedule D form (like for stock profits).

Jim

I am sorry if we offended your sense of fair play but the fact is that there are loop holes in the system and taking advantage of them leads to profit. If the powers that be want every cent accounted for then they need to close the loop holes. As long as you play by their rules whatever you can get away with is perfectly legal, sorry...

 

[jim4silver]

Your taxable profit would be what you get when you sell, minus what you paid for it. The difference is taxable as profit. If you sell for a loss you might be able to claim that depending on certain factors.

Bad advice on here from people telling you not to pay it. If someone doesn't want to pay it, that is up to them. But telling others to not pay is not giving sound advice.

Most coin stores/pawn shops require ID when you sell to verify who you are in case the stuff is stolen. Although they don't have to file a 1099 unless certain threshold amounts of PMs are sold, they still have your info on file on what you got paid and for what item. Who knows what agencies might have access to that information?

You show your profits or losses on your tax return on a schedule D form (like for stock profits).

Jim

I am sorry if we offended your sense of fair play but the fact is that there are loop holes in the system and taking advantage of them leads to profit. If the powers that be want every cent accounted for then they need to close the loop holes. As long as you play by their rules whatever you can get away with is perfectly legal, sorry...

Nobody offended me Savant. And you did not mention any legal "loopholes". You were basically instructing the OP to break the law. Your suggestion regarding sales less than $600 is not a "loophole". I suppose you were referring to the proposed law that would have required coin stores to 1099 if sales were over $600, but that did not mean sales below $600 were tax exempt. There is no minimum amount of PM sales profits that are tax exempt.

Unfortunately, someone could read your post and think what you proposed is a valid law/legal loophole.

Jim

 

[mts]

Unfortunately, someone could read your post and think what you proposed is a valid law/legal loophole.

Amen. It would be like telling a new driver not to worry about those speed limit signs as only a fool would follow them. That may be the way you live your life, but you don't want a new driver misinterpreting what you are telling them and getting a ticket. Or worse, killing someone. Explain the law and then let them decide whether or not they want to follow it.

And for the record, the legalities of "exploiting a loophole" are dependent upon whether or not you are interpreting that loophole correctly. If you are interpreting it wrong, then you are breaking the law. My understanding is that all precious metals sales are taxable. If you are aware of a true loophole then I'd be anxious to hear about it.

 

[mts]

I should also mention that it is important to keep track of all precious metals purchases. This means that you should keep detailed records with receipts when possible. If you do not have a receipt, the IRS will assume that you originally paid nothing for the metals and will expect you to pay taxes on the full amount of the sale. You obviously don't want that to happen so make sure you have proof of purchase when possible. If you are buying from a shop, get an itemized receipt. If you are purchasing from an individual then you are likely out of luck. When purchasing from an individual, you should still keep track of what was purchased, when it was purchased, and for how much. A simple spreadsheet works well for such tracking.