Every month we look at the numismatic legislation that Congress worked on the previous month. Since the 117th Congress is only three months into its first session, most of the legislative action is introducing bills.
Nowadays, Congress members do not have to drop their papers into the hopper in their respective chambers. Bills are submitted electronically. To prove that they are doing something, these legislators also post the bill on their official websites. Inevitably, an intern or low-level staffer makes a mistake that gets misinterpreted by the press, making it sound like a bill has been passed. According to the Government Printing Office, there has been no numismatic-related bill that has made it past its committee assignment.
A few days ago, Rep. Alexander Mooney (R-WV) introduced H.R. 2285, a bill “To amend the Internal Revenue Code of 1986 to clarify that gain or loss on the sale or exchange of certain coins or bullion is exempt from recognition.” Although this bill’s text has yet to be published, the title suggests that it will make the sale of coins and bullion exempt from capital gains taxes.
Currently, collectors who sell items from their collections are required to pay capital gains taxes on the profit from the sale of their coins. If you bought a coin for $100,000 then sell it for $150,000, the capital gains tax is applied to the $50,000 profit. Under the 2020 rate schedule, that is a 0% tax, except if you bought the coin within the last year, it is taxed as part of your regular income. But if you bought the coin for $50,000 before 2020 and sold it for $150,000 in 2020, then the $100,000 profit is taxed at 15%.
Are you confused? This is why the potential of eliminating the capital gains tax on coins and bullion will help the industry.
Here is the list of the eight bills introduced in March 2021.
H.R. 1648: To require the Secretary of the Treasury to mint coins in recognition and celebration of the National Women’s Hall of Fame.
S. 672: A bill to amend title 31, United States Code, to save Federal funds by authorizing changes to the composition of circulating coins, and for other purposes.
H.R. 1842: To require the Secretary of the Treasury to mint commemorative coins in recognition of the Bicentennial of Harriet Tubman’s birth.
H.R. 1789: To amend title 31, United States Code, to save Federal funds by authorizing changes to the composition of circulating coins, and for other purposes.
S. 697: A bill to require the Secretary of the Treasury to mint commemorative coins in recognition of the Bicentennial of Harriet Tubman’s birth.
H.R. 1900: To require the Secretary of the Treasury to mint coins in commemoration of the health care professionals, first responders, scientists, researchers, all essential workers, and individuals who provided care and services during the coronavirus pandemic.
S. 867: A bill to require the Secretary of the Treasury to mint coins in recognition and celebration of the National Women’s Hall of Fame.
H.R. 2284: To amend the Internal Revenue Code of 1986 to clarify that gain or loss on the sale or exchange of certain coins or bullion is exempt from recognition.
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