How is profit made on selling silver tableware to a refinery treated for tax purposes?
Posted on January 23rd, 2010 by admin
Purchased silver flatware and holloware (mostly dented) for the purpose of reselling to a refinery as scrap silver to make a profit.
Most of the pieces were purchased 1-2 years ago; a few within the last year. However, it was refined in one batch with one payout.
Would that profit be treated as ordinary income or capital gain? What are the tax rates?
If capital gain, how would I separate the profit (payout minus basis) into long term and short term gain since it was refined in one big batch with one payout?
How much money are we talking here? Is this a profitable endeavor
Capital gain. the items you purchased more than a year before selllng are long term. and those that you bought less than a year before selling are short term.
you will enter your purchase date and $ paid for it. Then you enter sales date, which will be same for all entries since you sold all at one time. Do you know the weights of each purchase? You would prorate the total price recieved in the sale by the % of weight that each purchase represents.
January 23rd, 2010 at 5:08 pm
How much money are we talking here? Is this a profitable endeavor
Capital gain. the items you purchased more than a year before selllng are long term. and those that you bought less than a year before selling are short term.
you will enter your purchase date and $ paid for it. Then you enter sales date, which will be same for all entries since you sold all at one time. Do you know the weights of each purchase? You would prorate the total price recieved in the sale by the % of weight that each purchase represents.
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