Is U.S. currency, including coins, generally taxable during an auction?

The correct answer indicates that U.S. currency, including coins, is generally not subject to taxation during an auction. This is because standard currency, such as paper bills and coins, is considered legal tender and is not classified as a taxable item when sold at auction.

While the sale of services related to the auction may incur sales tax, the currency itself is simply being exchanged and does not generate taxable income as it's recognized as a medium of exchange rather than a commodity. Thus, transactions involving currency alone do not typically create tax liabilities, making it common practice that they are not taxable in an auction setting.

In contrast, collectible coins or currency sold at a premium might have different tax implications, especially if they appreciate in value. In those instances, tax considerations may arise based on capital gains or other factors, but this does not pertain to standard currency transactions. Therefore, the general rule is that common U.S. currency does not attract taxation during an auction sale.