Health Care Bill Gives Gold Dealers High Blood Pressure

Coin dealers are up in arms against a new tax reporting regulation, which will go into effect starting Jan 1, 2012.  The 1099 form, which we get for information on stock and interest earnings will now be used for any purchase of goods and services that exceed $600 per year.  If you want to sell your 1921 Walking liberty half dollar for $700 to the local coin dealer, you will have to identify yourself with name, address, and social security number.  The dealer will have to mail you a 1099 form, with a copy to the IRS.  You will then need to pay your capital gains tax on the coin, which of course you were going to do anyway.  Arguing that income for the sale of coins is underreported, the government expects to collect an additional 17 billion dollars in taxes over ten years.

Most concerned about the bill are the small coin and bullion businesses.  With the sale of a single ounce of gold easily exceeding the reporting threshold, many small businesses which buy gold primarily from individual citizens may be required to submit thousands of 1099 forms each year.

Where does this new regulation come from?

Would you believe that it is in the Patient Protection and Affordable Health Care Act (more commonly known as the “health care bill.” Although the bill is designed to improve the health care of Americans, it is already giving the gold dealers high blood pressure.

America The Beautiful Silver Bullion Coins? Where the heck are they?

The law authorizing the production of the new America the Beautiful quarters also authorizes the min  to strike  .999 fine silver coins that weigh 5 ounces and have a 3 inch diameter.  We are now half way through 2010 and the mint has not yet produced one of these enormous five-ouncers.  This is one of those laws that is easier to write than to implement.  The first problem is that there are no five ounce silver planchets -- they have to be produced.  The second problem is that rolling the silver out to a diameter of three inches leaves the mint with a thin blank to work with.  Congress added to the law that the mint was required to put edge lettering on the coin.  The problem is that the coins are so thin, they crumple.  The mint has ordered a new press from Germany to produce these coins.  I wish the mint the best of luck.  Perhaps in the future,m the Congress should specify the weight, but let the mint come up with a reasonable diameter and production method.

It's a Girl!

The Boy Scouts of America Commemorative silver dollar has been released by the mint.  Many Boy Scouts were surprised to see that the most prominent figure on the obverse is a girl! Girls are allowed on the  Venturer program, but are not permitted in the Boy Scouts themselves.

The law authorizing the production of the Boy Scout commemorative dollar states that the coin design must be emblematic of the 100 year history of the organization. Some web bloggers have complained that the presence of a girl and the absence of Caucasian boys on the coin is inconsistent with the law.

For more on information on the Boy Scout coin, please see my webpage at www.peterplanchet.com/boy_scout_dollar.html