What gold/silver? You mean the stuff that suffered a horrible boating accident????
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I believe that cheating on your taxes in any way you can get away with is a patriotic DUTY. Every dollar you keep out of .gov hands is blessed.
Don't be the guy that says "I wish I could go back to 2011 and buy a bunch of gold / silver."
I have bought and sold PMs a few times and it's always a cash transaction with no ID required. I always pay what I think my fair share of the taxes should be, because the .gov does not know that you own it and won't send you a letter from the IRS.So, how many of the "Gold, Nuff Said!!!" pitchmen bother to tell buyers that Gold, Silver, etc. - even if held as raw metal, bullion, or bullion coins with no numismatic premium is considered a "collectible" under the federal tax code, and that there is no concept of a long term captial gains rate on collectibles meaning a federal tax on profits of about twice the long term (held over 1 year) capital gains tax rate?
Sure, this is irrelevant if you are considering edge cases like post-apocalyptic survivalism; criminal tax evasion; criminal bankruptcy fraud; criminal hiding of assets when qualifying for medicare; or fraudulent hiding of assets from the prevailing party in civil litigation. But, for the "expected case" of anyone buying in "investment quantity" (a non-trivial portion of your portfolio, not a few coins or ounces you buy because it's cool to own Gold and Silver), the tax implications are significant, and paying twice the rate you do on other assets is a factor that all the sellers are conveniently forgetting to mention.
I have bought and sold PMs a few times and it's always a cash transaction with no ID required. I always pay what I think my fair share of the taxes should be, because the .gov does not know that you own it and won't send you a letter from the IRS.
Rob, in terms of investment, if I end up paying taxes, that is a good thing. IE profit and not loss.
One rep point to the first person who an point out the web address for a big name precious metals brokerage firm that makes information about the "collectible/not capital gains" tax issue clearly available on their web site.
I know gold jewelry is not the best way to invest in gold but I was thinking I could satisfy Christmas shopping for my wife and increasing my PM portfolio at the same time. Anybody else do this?
If you decide the value of gold is dropping (or you just need some money, or you want to diversify), you might want to sell some of your gold. I'm guessing it would be a lot easier to convince the Mrs. to sell some of your gold bars than to sell some of her jewelry.I know gold jewelry is not the best way to invest in gold but I was thinking I could satisfy Christmas shopping for my wife and increasing my PM portfolio at the same time. Anybody else do this?
I know gold jewelry is not the best way to invest in gold but I was thinking I could satisfy Christmas shopping for my wife and increasing my PM portfolio at the same time. Anybody else do this?
Good thing I have none.
Hey Rob, you wisely point out that the ‘profit’ in gold is then taxable. But so is the capital gain of stocks and bonds.
I have never seen one. They all like to say that the SALE of the metal to you isn't reported to the government, but then they don't mention what happens if they buy it back from you, or what the taxes might be. If this is a trick question and the correct answer is "none", do I get the rep point?
And, I didn't realize it was taxed as a collectible. Good thing I have none.
How could anyone prove how much they paid for their silver & gold when the price fluctuates all over the place?
similar to the way I'm sure that people report their lottery winnings.
Sell a couple of eagles to the local dealer and get caught by the fed and as a practical matter, the bulk of the risk is a tax deficiency notice with interest and penalties. Sell an "investment quantity" of, say $50K or $100K in gold with a few tens of $K in profit, and $20K or more in unpaid taxes, and there is serious risk of felony charges for tax evasion.