Paying cap gains on silver

DEGuy said:
Although, if the side paying silver or gold is using american silver eagles and gold eagles for the face value, it isn't technically a barter transaction. Of course, I wouldn't want to be the one fight the IRS in court over that legal loophole. Eventually it'll be directly addressed in ederal court, and it'll be interesting to see what happens then.
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I personally do not plan to let them know I got inflated face value by bartering some coins ..
 
Just as a FYI, I do buy and sell for cash. I just worry one day when silver is $300, that if I wanted to use that money to buy a house it might cause some red flags if I do not report the gain, yet I am able to purchase this house out of no where. I suppose at that time, if I report a cost basis of $27, that will be so close to 0 that they would not suspect me of fraud since I would be paying tax on about 90% of the entire sale. I am hoping in the next several years the federal government will adopt a law similar to Utah and many of the other states which recognize gold and silver as legal tender.
 
cubical said:
Just as a FYI, I do buy and sell for cash. I just worry one day when silver is $300, that if I wanted to use that money to buy a house it might cause some red flags if I do not report the gain, yet I am able to purchase this house out of no where. I suppose at that time, if I report a cost basis of $27, that will be so close to 0 that they would not suspect me of fraud since I would be paying tax on about 90% of the entire sale. I am hoping in the next several years the federal government will adopt a law similar to Utah and many of the other states which recognize gold and silver as legal tender.
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Your issue is more about receipts...but for those wishing to save for a house and still trade in silver tax free...I think there is a trick to do that (you would have to have receipts of course). Setup an IRA with an online brokerage like Scottrade...buy and sell your gold/silver through that IRA/brokerage account. When you are ready to buy the house, I think you can then cash out (perhaps just 10k)...but this should be tax free and you can apply this to a new home I think.
 
rpwi said:
Your issue is more about receipts...but for those wishing to save for a house and still trade in silver tax free...I think there is a trick to do that (you would have to have receipts of course). Setup an IRA with an online brokerage like Scottrade...buy and sell your gold/silver through that IRA/brokerage account. When you are ready to buy the house, I think you can then cash out (perhaps just 10k)...but this should be tax free and you can apply this to a new home I think.
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Yeah I do that, though I buy miners, but 10k is just not enough. I do like the idea this guys has here. Rather than selling your silver, he suggests borrowing against it to purchase income producing properties, which is what my ultimate goal is.

http://www.youtube.com/watch?v=eCi6KChCx8U&feature=plcp
 
cubical said:
Just as a FYI, I do buy and sell for cash. I just worry one day when silver is $300, that if I wanted to use that money to buy a house it might cause some red flags if I do not report the gain, yet I am able to purchase this house out of no where. I suppose at that time, if I report a cost basis of $27, that will be so close to 0 that they would not suspect me of fraud since I would be paying tax on about 90% of the entire sale. I am hoping in the next several years the federal government will adopt a law similar to Utah and many of the other states which recognize gold and silver as legal tender.
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Pretty much , I do not think it could be noticeable .
 
Hate to say it, but if federal law isn't changed to include silver as legal tender again (or actually we start following the law that is already there) then it might be a good idea to not invest your silver in the USA. Like was said, there are other countries without capital gains taxes/other taxes. So the plan might be as follows:

1) Buy your silver in the USA
2) Wait for the mathematical end of USD
3) Either silver is remonetized and rises in value due to dollar depreciation, or it rises a ridiculous amount anyways due to terrible oil EROI.
4) If remonetized: invest in the USA, if not invest in a foreigner friendly country that won't tax you to Hades and back on your "gains" and allows foreigners to own property.

I like the idea of borrowing against the equity of your silver so that it never leaves your side. Obviously this works better when you have a king's randsom worth of silver.
 
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An additional note...

Its been a long time since I even paid for anything with Cash... The last time I visited the states or... no wait, The Solomon Islands. I used cash there a month ago.

Where do you swipe a gold coin in an Eftpos machine?
 
angelatc said:
Or work a deal with your buddy - get him to list them on eBay at a high price, then you buy them really quick. Print the page out, and voila - instant receipt. In 5 0r 10 years you won't be able to fake these...it will probably all be digital. But at this juncture, it's still a bitch for them to disprove a piece of paper written from a store that's been out of business for umpteen years.

Personally though - I'd try to plan on doing business with people who would take gold as payment.
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What about the fees associated with eBay?
 
rpwi said:
LOL...well that is one way to approach the issue. Perhaps if you do this in small amounts and are audited you claim it applied to your gift tax exemption?? Who knows... For somebody who wants to play by the rules and use non-dollars as currency...tracking the fair-market value of your non-dollars for EVERY transaction would be a serious downer.
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If you don't have a paper trail, there's nothing to audit.
 
rpwi said:
Your issue is more about receipts...but for those wishing to save for a house and still trade in silver tax free...I think there is a trick to do that (you would have to have receipts of course). Setup an IRA with an online brokerage like Scottrade...buy and sell your gold/silver through that IRA/brokerage account. When you are ready to buy the house, I think you can then cash out (perhaps just 10k)...but this should be tax free and you can apply this to a new home I think.
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Why would cashing out an IRA be tax free? There are indeed taxes and early withdrawal penalties to boot.
 
Carson said:
I sort of figure on average nobody makes any capital gains. The silver is still silver and trades amongst the other commodities flat.

Even though we've been conditioned to think we've really made a killing in the stock market it could be we are under the spell of an optical illusion..
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YMMV, but my investments so far have outpaced inflation easily.
 
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