[meteorite-list] meteorites and TAXES

From: Adam Hupe <raremeteorites_at_meteoritecentral.com>
Date: Sat, 3 Nov 2012 20:00:05 -0700 (PDT)
Message-ID: <1351998005.35669.YahooMailNeo_at_web122001.mail.ne1.yahoo.com>

Hi Michael,

Thank you for stepping up on some difficult issues and providing good input however I pay a much higher tax rate on meteorite sales.

The short-term and long-term capitol gains rate on meteorites are 28% because they fall under collectables like Gold, Platinum and Silver now do.?? Then another 15% has to be added for FICA which is taxed before Net Operating Losses (NOL).? 28% plus 15% equals a tax rate of 43% on realized profits squeezing dealers pretty hard. In Arizona and many other states, there is also a state income tax that has to be taken into account.? Meteorites fall under the highest capitol gains rate.


I wouldn't be complaining at all if it were only 15% like other investments.? Taxes have become very confusing.


Take Care,

Adam




----- Original Message -----
From: Michael Farmer <mike at meteoriteguy.com>
To: Paul Gessler <cetuspa at shaw.ca>
Cc: meteorite-list <meteorite-list at meteoritecentral.com>
Sent: Friday, November 2, 2012 4:29 PM
Subject: Re: [meteorite-list] meteorites and TAXES

it is only taxed if sold, wait a year and it is 15%. No gain like that can be taxed unless sold as there is no actual provable value.

Michael Farmer

Sent from my iPad

On Nov 2, 2012, at 3:50 PM, "Paul Gessler" <cetuspa at shaw.ca> wrote:

> All this talk about taxes and the like has raised some old questions for me.
> If this has been discussed before forgive me I missed it.
>
> Lets say a meteorite falls and you find it then someone sells one from the same fall creating a benchmark of value (however fleeting)
> Do you immediately incur a tax liability on the stone you have?
>
> I remember back in the day when Sammy Sosa and Mark Mcguire were in a homerun race and the topic came up that whoever caught the
> record beating baseball would immediately be forced to sell it to raise the taxes owed on it or pay out some ludicrous amount to the feds in order to keep it.
>
> So what gives?
>
> I recently read the article about the Novato 100 gram stone being worth $10,000
> GREAT! But does the owner now owe a percentage to the tax man????
>
> What are the facts concerning this kind of windfall?
>
> Any idea?
>
> -Paul Gessler
>
>
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Received on Sat 03 Nov 2012 11:00:05 PM PDT