Coin Collecting – Record Keeping
Published by Larry on Tagged Coin Collecting Basics, Instuctional, Record Keeping
Just as I am adamant on keeping detailed records as a treasure finder, it is very important to meet the requirements of record keeping for coin collecting. Anyone purchasing a quantity of coins should keep records regarding such purchases. This should include the price paid for each coin as well as the date purchased, so that if coins are sold the gain or loss can be calculated as capital gain or ordinary income. If for any reason they count or deduct expenses relating to coins, these expenses should be paid by check and an invoice or receipt obtained.
Dealers also document every sale regarless of size and issue an invoice to the purchaser. For all cash transactions over $10,000, dealers must file a report to the IRS on form 8300 and send a copy to the buyer.
There is a ten year requirement for records of coin sales and this enables taxpayers to fulfill all record keeping requirements for collectors, dealers and investors. It is also important to itemize and keep state and local sales tax records as well as commissions paid and any other expenses entailed in the sale of coins.
Whether you purchase coins, barter/trade for them, or find them with your metal detector, record keeping on the sales of all coins is essential. If you are just collecting coins with no intention of ever selling them, keeping records could make a big difference later if you have a change of mind. I started collecting coins in 1962 as a high school sophomore. I had no idea that I would ever sell a single coin. About five years later, as a college junior, I saw that I could help meet college expenses by buying and selling coins. BU Rolls of Morgan Dollars could be purchased at about $40. 00 and sold individually or in small lots for about double the purchase price. I made some great spending money with just that one technique. That was a few years before I got into metal detecting which dramatically changed by whole approach to collecting and selling coins. Here’s to “diggin it” Larry
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