Accepting Gold/Silver for my business and personal transactions, is it legal?

[Maximilian American]

Hello, I live in the state of Florida and run my business there that distributes raw foods. I want to accept gold/silver for purchases from my customers but would like to know if Uncle Sam would bother me if I did so?

I would like to have options for my customers to pay about $30 in Federal Reserve Notes or $1 Silver Dollar Eagle for 4-5 lbs of raw in-shell nuts, or 20 lbs of raw in-shell nuts and 1 hand-held cracker for $155 in Federal Reserve Notes or $5 in Silver Dollar Eagles or $5 in Gold Eagle...and so on...

I'm not worried about personal debts from a friend to be paid back in Silver/Gold from being against the law because that is between us and undisclosed in anyway, but for my business I want to be sure. This business plan is my preference because I have a higher confidence in the barter/real money system than the fiat system...I just hope I have the liberty within the laws of my state and nation to do so without being subjected to unjust fines or imprisonment by the monopoly developers.

Thank you

 

[noxagol]

Yes, it is perfectly legal. However, they can force you to accept FRN's if they are paying you a debt. If you give them a product in exchange for gold/silver on the spot, they cannot force you to accept FRN's as payment. If you give them product and expect payment later, then they can force you to accept FRN's. The payment must happen when you give them the item, or they owe you a debt and can force you to accept FRN's. For instance, if you went to a fast food place where you pay when/before you get food, then you could only give them whatever they were asking. If you go to a sit down place and get your food first and pay when you are done, then you can force them to accept FRN's no matter what payment they actually want.

That is the trick, you must always take payment at the time of you giving them whatever it is you are giving them.

As far as taxes go, no idea. Consult the usual suspects.

 

[Maximilian American]

Thanks for the input of good info. + Rep

Anyone know about the tax circumstances involving gold/silver acceptance as payments for business transactions?

 

[Scott Wilson]

Yes you can accept gold and silver but your tax obligations will be exactly the same as if you had accepted Federal Reserve Notes. This is clearly evident from what happened to Robert Kahre.

http://www.lasvegassun.com/news/2009/nov/17/businessman-robert-kahre-sentenced-tax-fraud-schem/

While his use of gold coin was related to how he paid employees his tax obligations are in relation to the FRN value of the coins.

Your only alternative is Private Business but that entails withdrawing from dealing in anything that is deemed "commerce" thus turning the issue into one of jurisdiction.

Here is some further info (listen to in order)...
http://www.youtube.com/watch?v=lbtoMUitXqQ
http://www.youtube.com/watch?v=UbOl4Td10DA
http://www.youtube.com/watch?v=LI0sXmfL29Y
http://www.youtube.com/watch?v=XDV3SBTnfDo

 

[Corydoras]

The IRS links in this post would be useful. You will be bartering PMs and other goods.
http://www.ronpaulforums.com/showth...as-currency.&p=3052602&viewfull=1#post3052602

 

[AsifShiraz]

Apart from reporting transactions under AML and getting a bullion dealer license in case volume of gold transactions exceed a threshold, I think the main thing here is that when you recieve payment in gold, you must note the price at the time you recieve, and that is your tax cost basis when you dispose of it. The difference is your capital gain. Depending upon how long you held it, it will either be short term or long term. Then report it on schedule D.

Also, since barter is actually a double sale, if you are buying gold specifically to use it as payments, then you may need a state sales tax number and report sales tax on the gold you barter. This one I'm not sure about.