Sales of Rare Coins Exempt as Sales of Monetized Bullion

Friday, October 3rd, 2014

 
 
Closeup photo of rare coins.
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Washington
General

The Washington Department of Revenue recently released a decision that the sale of rare coins was not taxable.

The taxpayer collected rare coins and wanted to know whether foreign and antique coins were taxable. These coins included metal coins from Rome, China, and Japan. The coins would not be made into jewelry or other works of art.

Washington does not tax sales of monetized bullion. Washington defines "monetized bullion" as coins or other forms of money that are (1) made from gold, silver, or other metals and (2) "heretofore, now, or hereafter" used as a medium of exchange under the laws of Washington, the United States, or any foreign nation. "Monetized bullion" does not include coins or money sold to be made into jewelry or works of art.

The Department decided that the coins were monetized bullion. Although the coins were sold as collector's items, the coins had been used as currency in the past. "Monetized bullion" included items that had "heretofore" been used as currency. Coins that were currency in the past were still monetized bullion. It did not matter that the coins were no longer used as a medium of exchange. The sales of the coins were therefore not taxable.

http://dor.wa.gov/docs/rules/wtd/2014/33wtd486.pdf


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