Coin Sale IRS reporting?

I have a few gold eagle coins and wonder if I sold them would I have to report the sale to the IRS (and state) when I fill out my yearly returns?
My neighbor gave me the following which he said he found on the web:
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1099 EXEMPT PRIVATE GOLD BULLION
Private gold bullion ( IRS 1099 Form exempt ) consists of any quantity sold to a dealer of the following items:

- American Gold Eagle Coins
- American Gold Buffalo Coins
- Gold Austrian Philharmonic Coins
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Would I presume, from that, that my gold eagle coins would not have to be reported to the IRS when they are sold?

 

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Total guess here, but unless you make a profit on them, I wouldn't think you would have to worry about it. You should wait for other opinions though

 

I have heard varying opinions from the IRS even on the topic. It seems that the 27% net profit may be the rule though most people treat pms as capital gains much lower. And come to think of it why should the high frequency trading hedge funds pay a lesser %?

 

what he said

also, remember: profits are taxable, but losses on hobbies are not deductible

 

Just because its not 1099 reportable does not make it income tax exempt for any profit you make. Just to clarify for those who might believe otherwise. Just because its not on information reporting does not negate profit taxability.

Edit: Sorry, I guess Frank and Toughcoins already beat me to it. I was not meaning to pile on.

 

The above transaction would be a purchase of inventory by a business and thus a 1099 filing is not required.

 

If losses on hobbies are not deductible, then gains on hobbies should not be reportable. They want the cake and eat it too, plus the crumbs...

 

Catch me if you can........Nya, nya, nya ya.........

 

Do not report any such sales, especially when there is a cash exchange. Get cash for the coins if possible! Some states do require a form. You may want to inquire if you state is one of them, but don't bother when cash is involved.

 

yup

 

never suggest tax avoidance, that is illegal.

and not what was asked

 

Did I misunderstand the question? Possibly. Personally, I never reported such transactions, regardless. AliceZ can judge that.

 

Be careful guys. The IRS has a vast Web of sophisticated reporting tools available to it, and cross checks these records to spot such stuff. Would they see a few hundred bucks? Probably not. Sell $5k of gold and there is a good chance something would get "tripped". The IRS does not have a ton of resources for field audits any more, but have a lot larger computer system and data than you would believe. They are using big data to put puzzles together, then ask, "um, so, where did that money come from?". Keep records, report sales and cost, and just pay the man. Better than the alternative IMHO.

 

Gold Eagle does not appear on the Reportable Items list below:
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What is a 1099-B IRS Form?
One of the purposes of IRS Form 1099-B is for precious metals dealers to report the proceeds of customer sales to the dealer for any of the precious metals from the IRS Reportable Items List.
Why is this form required to be filed?
The 1099-B form is used to report any proceeds paid to a non-corporate seller to the IRS. This reporting enables the IRS to determine whether individuals who may be selling items as a source of income have properly reported the income from those sales on their tax returns.
When is a 1099-B filed?
Dealers are required to file a 1099-B form when a customer sells the minimum quantity of any precious metals product that is included on the IRS’s Reportable Items List. Reporting specification varies depending on the specific coin or bullion piece(s) sold.
What Items are IRS Reportable Items?
Reportable Item Minimum Fineness Minimum Reportable Amount
Gold Bars 0.995 Any size bars totaling 1 Kilo (32.15 troy oz) or more
Silver Bars 0.999 Any size bars totaling 1000 troy oz or more
Platinum Bars 0.995 Any size bars totaling 25 troy oz or more
Palladium Bars 0.9995 Any size bars totaling 100 troy oz or more
Gold 1 oz Krugerrand as minted Twenty-five (25) 1 oz coins
Gold 1 oz Maple Leaf as minted Twenty-five (25) 1 oz coins
Gold 1 oz Mexican Onza as minted Twenty-five (25) 1 oz coins
U.S. 90% Silver Coins as minted Any combination of dimes, quarters, or half-dollars totaling $1,000 face value or more

 

Get cash/keep your mouth shut!......

 

Cash won't help you if the other guy reports it. After all he might want good records to establish his basis and not pay taxes later.

 

Agreed, what the IRS don't know, won't hurt them.

 

Kids at a coolaid stand are technically supposed to report their earnings, too. We can judge the sanity of that! Ha, ha!

 

I love it. Folks talking tax avoidance on a public forum.
I wonder how many IRS workers are coin collectors?
Do they still have a reward program?