Tax on selling gold?

[luvfreedom]

I asked my parents 4 years ago to look into buying gold. They are just now thinking about it. I personally have not taken the time to do any research on how to go about it because I don't have any money to do it. My parents are being told that when you decide to sell your gold there is a 40% tax, is this true?

 

[tmosley]

Gold is taxed at the collectibles rate, which is something like 40% (on profit, not total sale price). This is self reported.

I think there is a way to avoid the collectables tax and have it come a capital gains tax. I think it has to be more than a certain amount or some such.

Another alternative is to buy only legal tender coins, such as American Gold Eagles, Maple Leafs, Kugerrands, etc. These are NOT taxed, just as gains from currency trading are not taxed. This is why most of my silver is either ASE's or 90% silver coins. No taxes if sold.

 

[LibertyEagle]

http://www.ronpaulforums.com/showthread.php?t=180375

 

[luvfreedom]

Thank you both! I will look at the other thread as well.

 

[ItsTime]

Gold is taxed at the collectibles rate, which is something like 40% (on profit, not total sale price). This is self reported.

I think there is a way to avoid the collectables tax and have it come a capital gains tax. I think it has to be more than a certain amount or some such.

Another alternative is to buy only legal tender coins, such as American Gold Eagles, Maple Leafs, Kugerrands, etc. These are NOT taxed, just as gains from currency trading are not taxed. This is why most of my silver is either ASE's or 90% silver coins. No taxes if sold.

This is good to know. Thanks. I have only been buying legal tender coins because it was easier. Happy to know this about the taxes.

 

[LibertyEagle]

Gold is taxed at the collectibles rate, which is something like 40% (on profit, not total sale price). This is self reported.

It seems to be 28%.
http://jsmineset.com/2009/02/13/monty-comments-on-the-taxation-rate-of-metals-etfs/

I think there is a way to avoid the collectables tax and have it come a capital gains tax. I think it has to be more than a certain amount or some such.

Another alternative is to buy only legal tender coins, such as American Gold Eagles, Maple Leafs, Kugerrands, etc. These are NOT taxed, just as gains from currency trading are not taxed. This is why most of my silver is either ASE's or 90% silver coins. No taxes if sold.

Do you have a source for your last paragraph?

 

[EddieG]

Another alternative is to buy only legal tender coins, such as American Gold Eagles, Maple Leafs, Kugerrands, etc. These are NOT taxed, just as gains from currency trading are not taxed. This is why most of my silver is either ASE's or 90% silver coins. No taxes if sold.

This is incorrect. You are required to pay capital gains (at collectibles rate) for all bullion sales, including gov't coinage. That's one reason why Ron Paul introduced HR 4248, one part of which says: "Prohibits any tax on any coin, medal, token, or gold, silver, platinum, palladium, or rhodium bullion issued by a state, the United States, a foreign government, or any other person." This is a bill anyone who cares about freedom should support.

 

[tmosley]

This is incorrect. You are required to pay capital gains (at collectibles rate) for all bullion sales, including gov't coinage. That's one reason why Ron Paul introduced HR 4248, one part of which says: "Prohibits any tax on any coin, medal, token, or gold, silver, platinum, palladium, or rhodium bullion issued by a state, the United States, a foreign government, or any other person." This is a bill anyone who cares about freedom should support.

You are correct. I was misinformed.

You can, however, accept payment for goods or services in ASE or AGEs and report it at face value, reducing your tax burden significantly.

I'm not clear on the tax implications of 90% silver currency trading. I will look that up and report back on the subject.

 

[Shinerxx]

You can, however, accept payment for goods or services in ASE or AGEs and report it at face value, reducing your tax burden significantly.

Your employer can now be convicted of tax fraud for this. Robert Kahre got a minimum of 15 years in federal prison and $16M fine for doing this.

http://www.ronpaulforums.com/showthread.php?t=209422&highlight=robert+kahre

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

 

[Jordan]

You can, however, accept payment for goods or services in ASE or AGEs and report it at face value, reducing your tax burden significantly.

A recent court case proved that this wouldn't hold up either. An employer got busted big time for doing this with his employees.

 

[tmosley]

Your employer can now be convicted of tax fraud for this. Robert Kahre got a minimum of 15 years in federal prison and $16M fine for doing this.

http://www.ronpaulforums.com/showthread.php?t=209422&highlight=robert+kahre

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

Edit: he was convicted for a different reason, ie sometimes marking the bullion at one value, sometimes at another, which amounted to tax evasion.

http://www.campaignforliberty.com/blog.php?view=23766

 

[tmosley]

Currency gains of less than $200 dollars are not taxable (under IRC Section 988) in foreign currency transaction for personal use. One wonders if a legal tender coin such as the Canadian Maple leaf would fall under this law, meaning that so long as you sold your maple leaf for less than a $200 gain, you would owe no taxes.

That is untested waters.

 

[MsDoodahs]

Hi folks!

No one at this forum is to be considered a financial expert!

Anything you read here is to be considered opinion only!

you are responsible for your own due diligence!!

 

[ItsTime]

How can the US government call their own coins collectibles?

 

[Danke]

How can the US government call their own coins collectibles?

"their own coins"

Not directed to you, but:

If a man in China buys some Eagles, whose property is it? When he sells it, does he own a tax to the US government on it?

If not, why would someone in say, in Colorado owe a tax to the US Federal government if they did the same thing?

 

[ItsTime]

"their own coins"

Not directed to you, but:

If a man in China buys some Eagles, whose property is it? When he sells it, does he own a tax to the US government on it?

If not, why would someone in say, in Colorado owe a tax to the US Federal government if they did the same thing?

I meant legal tender coins they mint.

 

[EddieG]

A good way to approach bullion sales is to assume that the gov't has sealed all the exits. If you made money on it, it's pretty safe to assume you're legally required to pay taxes on the gains if you sell it. And not just good old capital gains taxes, but the collectible rate. And if you open up an overseas account, get ready to do your FBAR every year...

It's all ridiculous, but that's how things are with criminals.

 

[ArchPaul]

what gold?