the problem with selling silver, gold in the united states

[blindguy]

i talked with my CPA about selling coins on the forum. the problem is that in the united states some states, not all have state and local sales tax on all sales of silver, gold and all coins. this tax applies to private sales as well as non private sales. in my state of south dakota we do not have sales tax on coins and PM's but a state like Washington state does so if i sell to some one who lives in Washington state I must collect the sales tax and send the tax to Washington state. now for the people who live in Washington state who sell to some one in South Dakota no tax is collected because south dakota has no sales tax on coins and PM's. This makes the seller of coins and PM's has to keep track of what the sales tax is in all 50 states. you also must keep track of what  the tax is in the city you are selling to. And yes i have some people will say just do not report the sale. to those people I do not break the law. wrong is wrong period.  Ebay does collect the sales tax for you when you sell on ebay and sends the tax to each state for you.  the tax is also why people drive from other states who have sales tax on PM's to states like mine who have no sales tax to buy their gold and silver.  selling on the forum works in the UK it does not work well in the United States.  Jim

[sovereignsteve]

I have long been astounded at how complicated a country can make these things. Seems very strange to us in the UK, it's difficult to understand how a huge country made up of 50 states operates.

[AppleZippoandMetronome]

@blindguy - I was aware this was a problem with the different taxes in different states but had no idea that applied to second hand sales as well - seems pretty crazy that they can collect sales tax on the same goods over and over again. Seems like quite a minefield to have to wade through and I can understand how it would put people off.

[Tattoedamat]

So if I lived in a taxable state and brought a coin from you in no tax state, would i be libable for tax once it crossed statelines or once I brought it? Wondering how many store in no tax states to get round it.

Like you said very difficult to.keep tabs on unless selling via eBay where it automatically detects tax.  Either way betting not US tax is as bad as the 20% vat we have to pay in UK on any nongold PM

[ittle5huggy]

So what you need is a network of trusted people in the states that do not charge sales tax to buy as proxy for those in states that do and then send on ????? not sure how the law would look at that one.... probably have the feds on your back 🤣

[SilverPirate007]

I’m planning on visiting the US this year and I plan on ordering 20kg of silver to my rented apartment. Does this mean I pay US tax?

[ittle5huggy]

1 minute ago, SilverPirate007 said:

I’m planning on visiting the US this year and I plan on ordering 20kg of silver to my rented apartment. Does this mean I pay US tax?

try this for size may give you your answer https://www.bgasc.com/sales-tax-gold-silver-bullion-coins

[Tattoedamat]

2 minutes ago, SilverPirate007 said:

I’m planning on visiting the US this year and I plan on ordering 20kg of silver to my rented apartment. Does this mean I pay US tax?

I'm thinking you would pay import duty and vat when you bring it back into the country?

[Agnostic]

You need to find a new CPA

[SilverPirate007]

16 minutes ago, Tattoedamat said:

I'm thinking you would pay import duty and vat when you bring it back into the country?

Hopefully not 😂

[STONE]

" wrong is wrong period"   Thats true but that works both ways. Just because a govt. passes a law does not mean it is right. Abortion is legal, does that make it ok to murder a child?

No, it doesnt. What is wrong is the taxation of what our constitution calls money, gold and silver, moreover which is written and directed towards the states. It is not legal or moral to tax money, period. But they still do it. Do you pay federal capital gains tax on each and every sale you have made, that has appreciated in value, over the long course of your buying and selling carreer? Have you ever exceeded the posted speed limit? Have you ever rolled through a stop sign?

"For whosoever shall keep the whole law, and yet offend in one point, he is guilty of all.

[AgCoyote]

As far as I'm concerned, the government can fly a kite.

[STONE]

Heres an example:  I make $500 on a job I worked. At the end of the week I pay federal and state tax. I take the remaining $420 and buy a snowblower, at the point of sale I am taxed again. 4 years later, I sell the snowblower(which has depriciated in value) and I am taxed again. If a person follows the letter of the laws as wrritten will in no way have enough money to feed and care for his family. Which is more important? To pay taxes or to feed your family?  So over the life of the snowblower I have paid roughly $140 in taxes on my income and purchases and sales. The depriciation of the SB has brought the value to $150.00 so in the end my initial $500 is now worth $210.  Now I take that $210 and buy clothes and food for my children, and now I am taxed again for my purchases but because of the tax I can only afford one shoe and half a loaf of bread for little Johnny because $210 is all I have and figuring in the sales tax I can only buy so much. Now little Johnny outgrows his shoe and I sell it, then I am taxed again... Please tell me how that is right, since wrong is wrong. I am not trying to give the OP a hard time I am just making a point...

Just because a corrupt politician passes a law, does not make it "right" or moral...

[Tattoedamat]

1 hour ago, SilverPirate007 said:

 

I hear you stone yes it's wrong the government screws you every way you look it's as bad here unfortunately I am in a higher tax bracket so although I work hard in my job the government sit back and helps itself

[STONE]

Agreed, there is a point where self preservation needs to kick in for all of us.

[Tattoedamat]

Exactly the reason I stack don't get any interest back on my hard-earned cash sat in a bank account so I would rather it works for me

[blindguy]

1 hour ago, SilverPirate007 said:

I’m planning on visiting the US this year and I plan on ordering 20kg of silver to my rented apartment. Does this mean I pay US tax?

depends on what state you are in. i know when i use to put on coin shows i would have people drive up to 6 hours or more to buy coins and PM's

[blindguy]

you will like this. in Minnesota clothes are tax exempt so people who  live close to the minnesota state line in Wisconsin drive to Minnesota to shop. In wisconsin food at the grocery store is tax exempt so people from minnesota drive to Wisconsin to buy grocery's

[AppleZippoandMetronome]

17 minutes ago, blindguy said:

you will like this. in Minnesota clothes are tax exempt so people who  live close to the minnesota state line in Wisconsin drive to Minnesota to shop. In wisconsin food at the grocery store is tax exempt so people from minnesota drive to Wisconsin to buy grocery's

Can take that a step further. I grew up in Southern Ontario where it was (and I imagine still is) very popular for people in border towns to cross down in to the US to fill their cars with fuel and buy things that were much cheaper like cigarettes. If you can save a couple bucks...

[999magnum]

40 minutes ago, blindguy said:

depends on what state you are in. i know when i use to put on coin shows i would have people drive up to 6 hours or more to buy coins and PM's

Did you advise them that they're breaking the law by coming to a no sales tax state to purchase in order to avoid the tax otherwise collected by their home state? Do you know or have any information of family/friends that have purchased PMs in your state to avoid the tax in their state? Any info you can provide will be greatly appreciated.

[AgCoyote]

27 minutes ago, 999magnum said:

Did you advise them that they're breaking the law by coming to a no sales tax state to purchase in order to avoid the tax otherwise collected by their home state? Do you know or have any information of family/friends that have purchased PMs in your state to avoid the tax in their state? Any info you can provide will be greatly appreciated.

How is it breaking the law? Shopping across state lines?

[999magnum]

25 minutes ago, AgCoyote said:

How is it breaking the law? Shopping across state lines?

A quote from the most revered tax payer and honest to the bone American, " wrong is wrong period" .

[AgCoyote]

31 minutes ago, 999magnum said:

A quote from the most revered tax payer and honest to the bone American, " wrong is wrong period" .

I see nothing wrong with it. It's avoiding extortion. 

[999magnum]

11 minutes ago, AgCoyote said:

I see nothing wrong with it. It's avoiding extortion. 

My sarcasm is not translating well so here it is.

[SilverPirate007]

We all avoid tax in the UK as much as we can. Buying silver from Europe is avoiding tax, hence why the European Mint deliver the package with another company. Its fantastic! Keep it up I say.