The ACTUAL Impact of Health Care Reform on Gun Owners

There's absolutely nothing in it that is in any way specific to FFLs, or to firearms in any way.

Yes, that's how I read it: as adding good to services.
 
Well apparently it accrues over time, and can take place over several transactions throughout the course of the year.

So now every customer from whom you buy a 10 dollar item...needs a file with a tax ID number, in case they come back 11 months later with a 590 dollar item and all of a sudden you gotta 1099 his butt or be in violation. Jeebus the recordkeeping.
 
I'm sure it can't really be like that. I mean, supermarkets obviously won't be required to keep files for all their customers.
 
I'm sure it can't really be like that. I mean, supermarkets obviously won't be required to keep files for all their customers.
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Its not for customers its for vendors.

When you sell goods to someone for resale, it's 1099able

WildappliesacrosstheboardAlaska ™
 
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Page 2 under "summary of the enacted legislation"
No Kleinzeit, it would be if you run a grocery store and buy 30 bux worth of fresh carrots off some local farmer. Need to start a file on that guy in case he sells you a side of beef later..
 
That'll really help the bottom line in my little business. I was just thinking I needed another bunch of paperwork to do for the feds on my own dime.

I'm wondering how that works out for the casual collector/swapper though. Buy a gun, play with it a while, sell it off to buy another.

Oops--1099 comes in the mail. Do you have paperwork documenting your basis in the gun. Can you subtract the cost of the gun, or do you have to pay taxes on what you sell it for?

Seems like the whole thing can't be good for the licensed dealers. From a consumer's standpoint, it seems a lot easier just to sell on the private market.
 
Correct, it's when a vendor buys from you. If he buys more than $600 from you in a year then he's got to keep records.

What that really means is that he's got to keep records on everyone he buys ANYTHING from so that he will know if he bought more than $600 from any single person in the course of a year.
 
What that really means is that he's got to keep records on everyone he buys ANYTHING from so that he will know if he bought more than $600 from any single person in the course of a year.
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Yep, this is ugly, but I don't think it'll survive.

We're not the only business that buys from individuals for resale. Expect jewelry stores, pawn shops, car dealers and music stores to raise Cain about it as well.

We've got 21 months before it goes into effect.
 
I'm way behind on much of this, but can someone educate me on the state's suits (12 last I heard) as they pertain to gun owners and the HCR?
If the states contend that the Gov't cannot force a person to purchase a product or service (insurance) from private individuals, which is still under interstate commerce, then couldn't there be an out option to protect gun owners from further paperwork or intrusion if firearm transactions are conducted within his/her state?
 
Taxes?

I don't want to speculate, but I am hearing that value added taxes might be a source of funding for this new medical program. If that happens, it would impact shooting by making it more expensive.
 
Sure. Sorry about that.

Starts on Page 5, Line 11. Runs through Page 7 I think.

http://democrats.senate.gov/reform/m...-amendment.pdf
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Thanks for the info.

Plus, as I'm sure you all know, you will be able to deduct the cost basis of the firearm from the income reported on the Form 1099 Misc. Only the profit would be taxable. (Just a reminder.)

I assume it will be a long term capital gain if held for over one year, just like any other asset, but this is an assumption on my part.
 
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It's not all bad news...
You can deduct the cost of mileage to and from the gun shop !!!
You can deduct the transfer fees if you sell it to someone.
You can deduct the cost of the safe you keep it in before selling it.

For most of us, selling a gun, and filing a schedule C means we can deduct business losses from our real income. This is actually, potentially, quite good...
 
ursavus.elemensis, Actually if you claim "business expenses" involved with your gun sales to shops, I think you need to be an FFL holder;) ...
Brent
 
RDak,

I was thinking the same thing when I read your post. You should be able to deduct the cost basis of the firearm from the 1099 amount.

Does that mean you'd need an original receipt, or would an appraisal do?
 
If you purchased it, you'd need an invoice. If you have lost the invoice, the best you could do is try and get an advertisement, catalog, etc., showing how much it cost the year you got it.

If inherited, get the fair market value at the time of inheritance. Use a catalog, advertisement, etc, for the firearm at the time you inherited it.

ETA: An appraisal is great but might be an unnecessary cost to incur except for the most expensive types of firearms IMHO. An FFL could probably help you with this cost basis determination IMHO.
 
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It's not all bad news...
You can deduct the cost of mileage to and from the gun shop !!!
You can deduct the transfer fees if you sell it to someone.
You can deduct the cost of the safe you keep it in before selling it.

For most of us, selling a gun, and filing a schedule C means we can deduct business losses from our real income. This is actually, potentially, quite good...
Click to expand...

You wouldn't want to do that because that is for sole proprietorships and it would indicate you have a business of selling firearms. Plus, you'd have to pay the 15+ percent self employment tax on any net profits.

Just use the Schedule D to report these transactions. There is a space for deducting the cost basis.

I would imagine alot of these sales will not result in a profit. Being a personal asset, all you could do is reduce the gain to zero because the loss from the sale of personal assets is not an allowable loss for tax purposes.
 
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