IRS taxes - captial gain tax on stamp collection - philatelic material from USA sellers and dealers - 1855 India stamps Bombay used cover

It's year end so everyone is busy in selling there stocks or stamp collection - philatelic material or coin collection in order to minimize their tax payment as stamp seller have to pay capital gain tax so they can minimize tax payment.

When you sell stamps you have to pay tax to USA government through IRS as well as local government in form of sales tax and state tax.

Sales tax you have to pay no matter if you gain or loss money. It's same like VAT in European countries.

I see lot of high value stamp sold on eBay.

Do all seller pay tax to IRS as well as local government ?

In my last post I wrote about VAT when you sell stamp collection or philatelic material in UK. You can read by clicking following.

UK VAT on collector's item and philatelic stamps material - Scinde Dawk India QV 1852 from anglo-indian-affairs

Recently I saw 1855 India Queen Victoria stamp used cover sold for $4010 from New Jersey, USA eBay seller "jwalk5" member since 1999.!!

It's lot of money for this 1855 India Queen Victoria stamp used cover there will lot of hidden expenses it occur such as 

• eBay commission
• PayPal commission
• Local sales tax  (I paid sales tax when I bought Gandhi stamps from Palo Alto, California seller).
• State tax 
• Federal tax

Same apply when you buy it from offline auction houses as you will be paying auction fees to them, but taxes will be same either you are seller or dealer or auction houses.

But what happen if UK resident is selling from USA with help of friend of relatives staying in USA ? How they pay tax ?

Chances of Tax invasion is higher when seller try to sell if from multiple countries such as India or UK or Australia or Belgium or Netherlands.!!

So if you buy following Bombay used cover  at $4010 and you sell it for $6010 in future you will not make any money because you have to pay all the above expenses.

Now do you think this is a GENUINE cover from Bombay to Scotland ?

Because we know how easy it is to forged this 1855 QV stamps from India and also how easy rubber stamp is also forged.!!

In past I wrote about 1854 India Queen Victoria forgery stamps. You can read it by clicking following link.

1854 QUEEN VICTORIA STAMPS : Forgery in Indian stamps & Gandhi Boycott Label

1854 QV Queen Victoria India Litho stamps : Stamp Collection : 100 YEARS OLD ITEMS WILL NOT BE SHIPPED OUTSIDE INDIA ?

Queen Victoria stamps : 1854 India stamps forgery mint sheet can be used to make used stamps?

Queen Victoria stamps : 1854 India stamps forgery mint sheet can be used to make used stamps?

Queen Victoria India 1860 telegraph stamp - QV stamps

So what do you think about this used cover from Bombay to Scotland ?

Is it Genuine or Forgery ?

STAMPLESS COVER ,NO CONTENTS, BOMBAY TO EDINBURGH MAY 4,1855 WITH FOURTEEN EXAMPLES OF INDIA #2 SIX VERTICAL PAIRS AND TWO SINGLES. MANUSCRIPT MARKING 'PAID INLAND & BRITISH POST VIA BOMBAY & SOUTHAMPTON' RED PAID 25 JUL 25 1855, BOXED RED 'INDIA PAID, 'PM' DOUBLE CIRCLE BOMBAY 4 MAY 1855 AND BLACK DATE STAMP JUN W 26 M 1855. BLACK DIAMOND KILLERS ON ALL STAMPS.ON ONION SKIN PAPER.

If you see above screenshot you will see there was lot of interest in this cover. There were 11 bidders and 37 bids.!!

Do you think there is SHILL bidding in this transaction in order to increase price and glorify this philatelic material.

I am not sure whether ebay transaction is a Genuine or something else.  Do you think it is really bought and sold.?

I don't think this FDC should be more than $100 or 200 or 300.!! So what do you think about this FDC pricing and transaction.?

If you like this blog post you may also like following 1948 Gandhi stamp blog post.

1948 Indian Gandhi stamps used in Tibet 
Nepal Indian Embassy Cancellation on 1948 Gandhi Stamps
Early usage of 1948 Gandhi stamps
FAKE 1948 Gandhi stamp FDC from India.
Gandhi SERVICE stamp is it REAL or FAKE?

Also there are lot of cheating such as Forgery stamps, Shill bidding, BOGUS philatelic material  involved in stamps collection.

Want to know more about FAKE and FORGERY stamps then checkout other blog post click one of the following link and you will be surprised.!!!

1) Philatelic FAKE and FORGERIES.
2) FAKE AERO PHILATELY Covers.
3) Stamp collection CHEATING.
4) Stamp Collection Value
5) Stamp Collecting Facts
6) China stamp collection value.
7) First AirMail Post
8) World First Flight Cover
9) Greatest Stamp Collection Scandal 
10) Biggest stamp collection SCAM
11) SCANDAL in stamp collection 
12) How to increase stamp collection value

Following is information from IRS regarding tax on collections such as stamps or coins.  Please make sure you know what you are doing other wise IRS  is very strict on tax collection.





Now let's get back to point.

Do you think eBay will get commission from this transaction ? ($400 mandatory)

Do you think PayPal will get commission from this transaction if this is default payment of seller ?

Do you think IRS as well as local government and state government will benefit from this kind of transaction ?

Do you think this is real value ($4010) of Bombay used cover ?

Do you think it's a genuine transaction where buyer paid money  to seller, or seller open case with eBay to cancel transaction so he/she don't have to pay commission to eBay as well as he/she don't have to pay any taxes.?

Thanks
GSC