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[commoncents123-migration]

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[WinstonWare]

Keep the receipts of your purchases

[commoncents123-migration]

So is that really all there is to it? Just keeping receipts?

[truthteller]

The IRS looks at coins and profit under 3 categories

 

Hobby

Investment

Business

 

All three categories have their unique status and requirements, especially when reporting profits. You should check with your accountant for which category meets your individual criteria. If you collect coins with no profit in mind and just as a hobby and do not have deductions, just keep the receipts for buying AND selling and you'll have no worries.

 

 

 

TRUTH

 

[jgrinz]

The IRS looks at coins and profit under 3 categories

Hobby

Investment

Business

All three categories have their unique status and requirements, especially when reporting profits. You should check with your accountant for which category meets your individual criteria. If you collect coins with no profit in mind and just as a hobby and do not have deductions, just keep the receipts for buying AND selling and you'll have no worries.

TRUTH

 

- I would fall under all three catagories then ... hahah

 

I wash all proceeds through my business which is taxed the highest - If they ever want to chase me for something I can use that as a bargaining chip that I paid too much tax for ALL THESE COINS ( All purchaser and sales reciepts kept of course )

[World Colonial]

Good record keeping is neccesary.

 

But aside from that, most taxpayers run into problems when deducting losses. As a hobbyist if my recollection is correct, you cannot deduct them. The other main difference is the expenses you can deduct and how you can deduct them. Some may not be deductible and those that are deductible I believe must be claimed as a miscellaneous expense subject to the 2% AGI limitation.

[Conder101]

You can't deduct NET losses, but losses on the sale of some coins can be used to offset gains made on others.

[World Colonial]

Correect, its the same as with gambling losses unless you are a professional gambler.