Taxing Precious Metals (topic name changed)

[Me&MyBoy]

I think all the moderators are Dems. (Please don't ban me!)

I sincerely doubt it. I think it's more likely that the owners, admins and mods here don't want their metal detecting site turned into a quasi version of freerepublic.com, where every comment has to be more inflammatory than the last just to prove you're a true patriot.

There are a ton of sites dedicated to political "discourse" where impotent rage can vented, no matter your point of view. You can also turn on MSNBC, FOX News or the like and scream at the TV until you're hoarse.

 

[mcdoogal]

Gauntlet, Hmmm... seems like it would come under 'Hobby income" thus if the hobby expenidture is more than the income, it non taxable. No?

 

[Cfmct]

I think all the moderators are Dems. (Please don't ban me!)

if posts get deleted then they broke the rules... honestly the title of the thread is over the line...

 

[Diggler]

if posts get deleted then they broke the rules... honestly the title of the thread is over the line...

Yah, and "Church of the Compadre"...

 

[Cfmct]

I just got finished reading the law... from what i read its geared more towards people buying and selling coins and bullion... there was no mention of jewelry... maybe I'll research it a little more...


Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change.

 

[SeabeeRon]

I just hope we can all discuss this as adults and keep the politics out of it!

 

[scoundrel]

I sincerely doubt it. I think it's more likely that the owners, admins and mods here don't want their metal detecting site turned into a quasi version of freerepublic.com, where every comment has to be more inflammatory than the last just to prove you're a true patriot.

There are a ton of sites dedicated to political "discourse" where impotent rage can vented, no matter your point of view. You can also turn on MSNBC, FOX News or the like and scream at the TV until you're hoarse.

I think the mods know I was joking.

 

[Me&MyBoy]

I think the mods know I was joking.

I did too. But I think there are a few around here who take life a little too seriously sometimes, and it doesn't take much of a nudge to send them over the edge.

 

[bigstemz]

Ok

I just hope we can all discuss this as adults and keep the politics out of it!

It's a political topic as Craig stated. What is there to discuss if you can't talk about who made it happen, how it will change or the details of it? Honestly?

 

[vexhold]

I appologize if this topic is starting a political frenzy. It was a simple metal detecting related question which just happened to be also related to government.

As for jewelry, the bill states:

"Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change."

Jewelry is a precious metal (the good ones anyways), and yes, they do only mention coins and bullion, but I think they leave it pretty open to more.

 

[zeemang]

"small businesses and self-employed people that exceed $600 during a calendar year" is the key phrase here. What if you're not a small business or self employed?

 

[Onaug]

If you have to pay income tax on the finds you sell, then I would take that as "them" saying you're a business....in which case you should deduct your detectors, headphones, diggers, all related gear, not to mention mileage on your vehicle......and so on.

Interesting...

But I think they only want to tax you if you are successful so I doubt we will ever get to deduct our gear. I guess its a system of double standards from now on.

 

[AceGVSU11]

I will just get duel citizenship in canada and say I sold all my stuff as a canadian. Haha!

 

[scoundrel]

I did too. But I think there are a few around here who take life a little too seriously sometimes, and it doesn't take much of a nudge to send them over the edge.

That's why I do it.

 

[Rudy]

I think the mods know I was joking.

Some jokes are not appreciated. Running a forum takes a lot of effort and we have other things we could be doing instead of baby sitting inflammatory threads.

 

[Gauntlet]

I just got finished reading the law... from what i read its geared more towards people buying and selling coins and bullion... there was no mention of jewelry... maybe I'll research it a little more...


Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change.

I'm going from memory (lol, stand back), and didn't double check what I'm about to say, so I may be totally incorrect.

I used to receive at lease a couple 1099's a year when I was working (self-employed Contractor). They were simply a form from someone who'd purchased my services/goods, and the 1099 was showing they didn't withhold any taxes from the monies they'd paid me, of course along with the amount they'd paid.

I believe this was at the same $600 threshold then, as it is now. The 1099 isn't anything new, been around forever, it's simply a "receipt" showing what someone had paid you (similar to a W4, other than it has withholding), and they'll likely use it as a deduction (expense) when filing their taxes.

 

[Jason in Enid]

Yes, but if YOU (meaning us) don't file that 1099 as income on our taxes, you could be charged with tax evasion if there is an audit.

$600 is a joke! That's not even 10 grams of gold!

 

[Mike1961]

I'm going from memory (lol, stand back), and didn't double check what I'm about to say, so I may be totally incorrect.

I used to receive at lease a couple 1099's a year when I was working (self-employed Contractor). They were simply a form from someone who'd purchased my services/goods, and the 1099 was showing they didn't withhold any taxes from the monies they'd paid me, of course along with the amount they'd paid.

I believe this was at the same $600 threshold then, as it is now. The 1099 isn't anything new, been around forever, it's simply a "receipt" showing what someone had paid you (similar to a W4, other than it has withholding), and they'll likely use it as a deduction (expense) when filing their taxes.

I recall something similar. So the solution might be to try to keep your transactions with each dealer/person under $600. Probably easier said than done.

 

[Gauntlet]

I recall something similar. So the solution might be to try to keep your transactions with each dealer/person under $600. Probably easier said than done.

Yes, but that needs to be per year, not per transaction. I used to get a certain number of 1099's, even though I'd never reached the $600 mark (with that particular client), so it must have been the preference of their tax preparer. If they ask you (at the time they purchase metals from you) for personal info, I'd almost bet they'll issue you a 1099 at the end of the year.

Seems like there's a lot of uncertainty surrounding the subject (in the matter with which it applies to us, and our hobby), but if I were to be in the position of being a seller, I'd ask the buyer in advance about it (1099), and what information is he/she requires. I'd be surprised if you weren't required to show ID (Drivers License), but only more for a traceable ID in the event the items were reported stolen.

Maybe someone who can decipher the mumbo-jumbo of the requirement could put it in Laymans terms for those like me

 

[AceGVSU11]

Maybe the price of gold will just drop off the deep end and everything would balance out... you know... $150 an oz. That would be a much worse case scenario then a 1099 I'd think...