Dealers Can Help Lick Tax Issues for Stamps, Coins
Arizona Coin Collector
http://online.wsj.com/article/SB122913449277903651.html?mod=googlenews_wsj
Dealers Can Help Lick Tax Issues for Stamps, Coins
DECEMBER 12, 2008, 9:42 P.M. ET
By KELLY GREENE
I enjoyed your Ask Encore article about selling
coins. I am wondering how to establish a cost
basis for income-tax purposes. I have no receipts
for many of the old coins I have. Do you have
any suggestions?
-Larry Dranchak, Continental, Ohio
* * *
I have a mostly U.S. stamp collection that I
haven't looked at for about 50 years. Could you
point me in directions to evaluate and sell the
collection?
-Bob Larson, Rochester, N.Y.
Our column last month about selling coin collections
elicited questions from readers wondering how to
value such sales for tax purposes -- and how to
apply the same lessons to stamps.
To review: Working with a coin dealer is probably
the best way to sell a coin collection quickly. But
if you have coins worth at least several thousand
dollars, you might get a larger return on your
sale through an auction.
If you acquired the coins years ago, and can't prove
when they were purchased, establishing the cost
basis can take some work. But, in many cases, it is
possible, says Greg Rohan, president of Heritage
Auction Galleries, in Dallas, which says it is the
largest rare-coin company in the world and the
third-largest auction house.
"The Internal Revenue Service allows for a
retroactive creation of basis," Mr. Rohan says.
Typically, that process begins with looking at a
history of coin prices. Mr. Rohan recommends
working with a dealer who has a research library.
His strategy is to help clients figure out when
they bought their coins, one by one, starting with
the most valuable pieces.
You can find directories of dealers at
pngdealers.com, the Web site for the Professional
Numismatists Guild of Fallbrook, Calif., and at
money.org, the Web site for the American
Numismatic Association in Colorado Springs, Colo.
Shifting to stamps, there are generally two
categories of stamp collections: "youth-formed,"
or shoe-box, collections, which generally have
little value, and leather-bound albums assembled
by serious collectors, whose value depends on the
rarity of the stamps, says Michael DuBasso, director
of the nonprofit American Philatelic Foundation
in Los Angeles.
If you have a shoebox collection, "take it to a
local dealer; 99.9% of the time they're going to
say there's nothing here. In that case, give it
to someone who's interested in stamp collecting,"
Mr. DuBasso says. Dealers and auction houses are
listed at Americanphilatelic.com,
stampauctionnetwork.com and asdaonline.com.
If you have an album assembled by a serious
collector, consider an in-depth appraisal, Mr.
DuBasso says, which can help you figure out the
best way to sell it. "If you have high-quality
stamps worth $1,000 or more, it may be worth it
to go to auction. But the average collection has
$1 to $20 stamps."
With collectibles like coins and stamps, the
top tax bracket for long-term capital gains
is 28% -- a higher rate than the 15% on
long-term capital gains on securities. Despite
the different tax rates, you may be able to
offset stock-market losses this year with gains
from the sale of collectibles, Mr. Rohan says.
But you have to be careful to order your losses
and gains as specified by tax rules. Your best
bet: Seek help from a tax adviser to get it right.
You also may want to consider donating. See IRS
publications 526 on charitable contributions
and 561 on valuing donated property, available
at irs.gov.
Send your question to enc...@wsj.com. Ask
Encore/Focus on Retirement is a weekly column
answering readers' questions about retirement
and personal finance -- from annuities and
bonds, to trusts and inheritance issues.
.
Lorrie S.
sales. It's your collection. Why would you let a thief (IRS) dip their
filthy hands in it?
"Arizona Coin Collector" <nos...@nospam.com> wrote in message
news:CY6dnd7CF8v-VN7U...@earthlink.com...
PC
"Lorrie S." <lorri...@yahoo.com> wrote in message
news:gi0lhr$h5h$1...@news.motzarella.org...
> This one is simple. Don't give the IRS one fucking cent of your rightful
> sales. It's your collection. Why would you let a thief (IRS) dip their
> filthy hands in it?
>
So you don't go to prison and/or have to pay enormous fines? Ya think?
Lorrie S.
news:gi0m85$ogn$1...@news.motzarella.org...
> So you don't go to prison and/or have to pay enormous fines? Ya think?
>
Only those who lack resourcefulness.
PC
Please share and enlighten me.