Thought about Lejeuene and others who find massive amounts of silver...

[bazinga]

I just did some basic number crunching on her because I think she has found the most on the year, and I'm not just trying to single her out. This really applies to all of us on here, but I used her because she has been extremely lucky with her finds and they dwarf most of our finds. This is all merely food for thought...

She has close to 5000 silver halves worth over $10,000 in current silver value. If she keeps this current rate up she will have over $20,000 in silver by years end, which is a LOT!! She only has face value in these. I am not sure what she does with them all, but when she goes to sell won't she be required by law to pay a capital gains tax or something along those lines? In 10 years times she could theoretically have over $100,000 in silver, and when she goes to sell I'm sure the IRS would like their cut from the sale.

Then the next question, if she were to just sell a little at a time to hide the income from the sale, would this be considered money laundering?

Again, I wasn't trying to single her out, just using the numbers from her signature because she finds so much that it makes these questions a bit more realistic than the rest of us that find a few hundred silver halves a year at the most.

 

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[Texas_Meteorite_Hunter]

Don't even bring up IRS crap in this forum. Not the place.

Just remember the IRS ruling for THers. If you find a coin of numismatic value, you do not have to declare the value the year of the find, only the year of the realized gain.

 

[RaptorSE]

Don't even bring up IRS crap in this forum. Not the place.

Easy Tex, your first post in this forum was 3 days ago. You the rules maker in here now ?
Dayum !

Talking about taxes in regards to CRH'ing proceeds and sales is plenty on topic I think.
Its about information for those who want to learn it.

 

[Texas_Meteorite_Hunter]

Whoops, yea that first sentence could read a bit hostile. Wasn't meant to be. Sorry!

 

[Emperor Findus Cladius]

I pay PLENTY enough in taxes as it it, what big brother don't know won't hurt him. It would be good to know though at what point the coin dealer or refiner reports it to the IRS.

 

[snappy]

looking at a couple refineries it looks like

"any single transaction that exceeds $7,000, or $10,000 cummulative in any 3 month period"

http://www.midwestrefineries.com/aml_ind.htm

http://www.northernrefineries.com/amlindv-a.htm

 

[RaptorSE]

No prob Tex It did look like a hostile remark back at Brian (bscofield),

so I am very glad it wasnt meant to be. He hasnt been around in a long time,
didnt want him to leave again !

As for taxes.. I keep hoarding and havent ever sold... I guess the time will come
someday. Not sure what the plan will be.

 

[LJ]

I am not planning on selling any of this. My plan is to just pass it along to the next generation. Although plans can change at any point.....never know. If an opportunity arises whereas gains can be made quicker in another area such as mutual funds....or whatever it may be.....then that is always a possibility. I think everyone collecting should consider these possibilities. We are all doing this for our own reasons.

This is a very interesting topic though and something I have never thought about. I will do some homework on this and follow up.

Thanks Brian...again, very interesting. No, I don't feel you were pinpointing me because I understand where you were going with this.

 

[packerbacker]

How could the IRS possibly prove how much it cost you to get the silver you are selling? If you claim the time, gas, wear and tear etc. it could possibly be a wash or a LOSS. How would they know you got it for face? Maybe you or a relative bought it back when silver was $50 an ounce. To be safe though, just stay under the radar and make small transactions so you don't call attention to yourself. It may be a fun hobby but you are spending time and gas etc. to pursue the silver and it too has a value. That value or operating cost, technically, can be deducted from the profits. In 10 years I'm hoping silver will be $200 an ounce!

 

[cyberdan]

How could the IRS possibly prove how much it cost you to get the silver you are selling? If you claim the time, gas, wear and tear etc. it could possibly be a wash or a LOSS.

Then good records need to be kept now and hold on to them till many years after you dispose of the silver.

 

[bazinga]

I am not planning on selling any of this. My plan is to just pass it along to the next generation. Although plans can change at any point.....never know. If an opportunity arises whereas gains can be made quicker in another area such as mutual funds....or whatever it may be.....then that is always a possibility. I think everyone collecting should consider these possibilities. We are all doing this for our own reasons.

This is a very interesting topic though and something I have never thought about. I will do some homework on this and follow up.

Thanks Brian...again, very interesting. No, I don't feel you were pinpointing me because I understand where you were going with this.

Then is there the thought of an inheritance tax? Because if a lawyer is going over an estate and sees that huge amount of silver they are probably going to report most of it (while taking some for themselves from what I've heard).

But to be honest, this is certainly a problem that I'm jealous that some of you might actually have in the future. I gave up earlier this year because the time / gas spent wasn't worth it for the little amount of silver I was getting, if I was getting at all. But when I move soon I will start back up doing it again and hopefully have some better luck.

No prob Tex It did look like a hostile remark back at Brian (bscofield),

so I am very glad it wasnt meant to be. He hasnt been around in a long time,
didnt want him to leave again !

As for taxes.. I keep hoarding and havent ever sold... I guess the time will come
someday. Not sure what the plan will be.

Yeah, it sure has been a long time, haha. I've just been as busy as can be for the last few months. Glad to see everyone else on here still finding their fair share of silver, though. Must be nice, haha.

 

[cyberdan]

Then is there the thought of an inheritance tax? Because if a lawyer is going over an estate and sees that huge amount of silver they are probably going to report most of it (while taking some for themselves from what I've heard).

Sounds like it is time to create a "hidden cache" for your children/grandchildren to "find"

 

[LJ]

I called a coin shop today to ask about this. The guy told me if they bought anything for $10,000 they have to report it to the gov't. Anything under that amount does not have to be reported. He said if you have over $10,000 to sell just split it up.

Again, this is what a coin dealer told me.

Just wanted to pass on what I found out on this subject.

 

[TxTim]

Has anyone ever been issued a 1099 from a buyer?

 

[MalteseFalcon]

Last year I only made one sale for $200, and I did report it on my income tax under "Miscellaneous Income".

But then, I have a high-powered CPA who gets me tax refunds even when it appears to me I will owe the gummint.

Nice info though. At the rate I am going, I might actually make a thousand or so this year.

I think that lejeuene is making out like a banditress due to the Fed she is getting her stuff from.
Seems that the Fed nearest her (Nawlins?, Houston?) must have an abundance of silver halves in their vaults. Then again, she gets lotsa hand-rolled halves turned into banks by customers, so it also appears that their is just plain lotsa silver in circulation or in private hands down in Lousiana.

 

[MalteseFalcon]

Has anyone ever been issued a 1099 from a buyer?

I can't see why they would. Selling silver to a buyer does not mean you are doing work for them. You are simply their customer.