TAX
How can I recover the tax that I was charged for a purchase of some coins? I am sure that my state does not have a tax on the purchase of coins. THANKS.
4 comments
How can I recover the tax that I was charged for a purchase of some coins? I am sure that my state does not have a tax on the purchase of coins. THANKS.
house*of*paws
·2 years agoHi @im-poor2
I know that some states tax only coins and bills that are sold for more than their face value. [Florida is one that I recall.]
simba6
·2 years agoYou can file for a refund of it on your state's income tax. Depending on your state, you may need to attach another form for it. Contact your state's tax office to get one. Be sure to keep copies of your purchase and payment in case it's needed.
mudshark61369
·2 years ago@im-poor2,
If the coins were listed in the Collectibles category instead of the Coins and Currency category that could be why you were charged a sales tax as @richard1rst wrote. When shopping for coins/currency on ebay, check the listings to see what category they are listed in. I've seen them listed as Collectibles and art > Collectibles > Historical Memorabilia instead of Coins & Currency which would trigger a sales tax to be charged on the sale.
richard1rst
·2 years agoWell you don't give us any specific information so the best I can do is guess.
I have seen that there is typically no sales tax on a coin or bill IF it is STILL in circulation. Which to say current currency. BUT coins and bills which are no longer in circulation or are considered collectibles because of an error or because they are the old silver content coins ARE taxed since they are considered collectables and/or investments.
In fact, the Krugerrand, which is the official currency of South Africa IS taxed since the coins being sold here are considered investment vehicles, not current currency.
I am sure every state is different, but you might want to check the laws in your state more carefully.
Disclaimer: This information is supplied as an accountant not a coin dealer. I am sure there are dealers who can chime in and confirm or correct.
NOW as to the recovery. I see that you are also a seller so presumably you file a sales tax return with your state tax department. On that form you can claim a credit for taxes paid against any monies that you might owe. On the other hand if you are not filing sales tax returns then you would do best to just let it slide. Make an issue out of it and you may find the tax boys suddenly looking over your shoulder.