Sale of Coins

Forum|Forum|4 years ago
March 5, 2022
1 reply
10 views

I have a client who goes to the bank and buys rolls of quarters to look for errors. If he finds one, he resells on Ebay for a profit. He also buys coins from Ebay and resells for a profit. Are these sales reported on Sch D as capital gains? I assume since it's currency it can't be reported on a Sch C? He does have an office and is planning on opening a shop to sale the coins. I haven't ever dealt with this kind of tax situation before. Any help would be greatly appreciated. Thanks in advance.

ProSeries Professional

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Just-Lisa-Now-

Intuit Community Champion

Are they considered collectibles if they have an error on them?

P.S. this sounds like a tedious hobby, but I guess if you can sell one with an error for more than 25 cents, youre making a profit.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

C

CRM2182Author

Level 5

Yes they are considered collectibles. As are the ones he buys to resale. Oh I know, but he's selling quarters for around $60.00 each with errors or certain mint marks. If none are in the roll he cashes them back in at the bank. He's made around 20k doing this.

rbynaker

Level 13

A regular and continuous activity with a profit motive sounds like a trade or business to me. I'm not sure it's relevant that the coin shop is online via ebay instead of brick-and-mortar.

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