As the coin scandal churns: update.

[truthteller]

The next episode of "As the Coin Scandal Churns".

 

 

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050520/NEWS24/50520001

 

 

 

 

 

TRUTH

[gmarguli]

Mr. Noe has hired a forensic accountant to find out how many coins are missing

 

He needs a forensic accountant to find this out? Is that a joke?

 

 

 

But this case is unique because the bureau and Mr. Noe believe that Mr. Storeim wrongly used insider knowledge in transactions by pre-emptively accessing coin grades.

 

 

 

Rare coin dealers such as Mr. Noe try to buy coins that they hope will be graded at the highest level, meaning more than 59 on a 1 to 70 scale.

 

Yep, I always try to get my coins graded better than 59. It's a real disappointment to me when they only grade 59.

[truthteller]

"But this case is unique because the bureau and Mr. Noe believe that Mr. Storeim wrongly used insider knowledge in transactions by pre-emptively accessing coin grades"

 

 

So, if I decide that I want to look up grades on NGC or PCGS website, before they are sent off, that's using insider knowledge? I guess all submitters have insider knowledge.

 

 

 

 

TRUTH

[JamminJ]

Yep, I always try to get my coins graded better than 59. It's a real disappointment to me when they only grade 59.

 

 

That's going in my sig line!

[CTcollector]

"But this case is unique because the bureau and Mr. Noe believe that Mr. Storeim wrongly used insider knowledge in transactions by pre-emptively accessing coin grades"

 

 

So, if I decide that I want to look up grades on NGC or PCGS website, before they are sent off, that's using insider knowledge? I guess all submitters have insider knowledge.

 

TRUTH

 

Call it what you like; insider trading, breach of fiduciary responsibility, or stealing, the people of Ohio were ripped. The dealer is purchasing coins at a lower value than than the coin's current (new) grade only AFTER knowledge that the coin has upgraded. In effect he is receiving all the reward with zero risk. The people of Ohio should be entitled to the increased value of their asset, not some devious dealer.

[michael]

i would love to see a list of the coins

[MastaHanky]

Yep, I always try to get my coins graded better than 59. It's a real disappointment to me when they only grade 59.

 

I'll ease your disappointment by buying all your 59's off you for MS60 bid.

[truthteller]

Ohio's "Coingate" will force state to elimate sale's tax exemption.

 

 

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20050521/NEWS24/50521039

 

 

 

TRUTH

[gmarguli]

Interesting move, but I'm not so sure it will pass. Other investments aren't taxed, so why should these be.

[truthteller]

"Interesting move, but I'm not so sure it will pass. Other investments aren't taxed, so why should these be."

 

 

The timing is perfect since the state will have to recoup the losses from the scandal. I see the voters having no problems since coin purchases involve a very small amount of the total retail sales.

 

 

 

 

TRUTH

[scroll]

I'm not sure it's legal to tax US currency, though I see that some states apparently do.

 

Can you imaging the bank charging you tax when cashing your paycheck?

[gmarguli]

"Interesting move, but I'm not so sure it will pass. Other investments aren't taxed, so why should these be."

 

 

The timing is perfect since the state will have to recoup the losses from the scandal. I see the voters having no problems since coin purchases involve a very small amount of the total retail sales.

 

TRUTH

 

 

It's not the voters deciding this. It is the State Legislature.

 

They can tax investments, but all that does is make the people investing purchase their investments in other states. After all, if CA changed their laws and started charging sales tax on purchases over $1000, wouldn't you start buying your coins from outside the state? I know I would or I'd buy more from the dealers that look the other way on sales tax. It'd end up hurting the state more than helping.

[JamminJ]

They can tax investments, but all that does is make the people investing purchase their investments in other states. After all, if CA changed their laws and started charging sales tax on purchases over $1000, wouldn't you start buying your coins from outside the state? I know I would or I'd buy more from the dealers that look the other way on sales tax. It'd end up hurting the state more than helping.

 

You still owe California use tax on coins bought from out of state.

[gmarguli]

They can tax investments, but all that does is make the people investing purchase their investments in other states. After all, if CA changed their laws and started charging sales tax on purchases over $1000, wouldn't you start buying your coins from outside the state? I know I would or I'd buy more from the dealers that look the other way on sales tax. It'd end up hurting the state more than helping.

 

You still owe California use tax on coins bought from out of state.

 

[truthteller]

"You still owe California use tax on coins bought from out of state."

 

 

Use tax can be avoided if you start to claim your hobby as a profit making business. You do not have to change much to do this. Start filing schedule C forms and make a profit, even a slight one, on coin sales, even if you trade. You don't even have to get a resale number, provided you pay sales tax on coin purchases under a $1000 in CA and sell to dealers. Your coin collection can be your inventory.

 

 

 

TRUTH