I will sell my $300k gold bullion to buy a home anyone know what kind of taxation I'm subject to if I do this? Does buying a home cancel out taxation on gold sale? thanks, sos811
I'm going to guess that what country you live in would be really relevant information... And in any case, I would talk to an accountant or tax guy if I was going to sell $300K of gold, *before* you sell it. Dave
The section that allows tax exempt trades are with "Like property" and under IRS 1031 section. It has to be done through an intermediary, and having done it with rental exchanges is a pain as specific rules and time limits have to be maintained. The intermediary has to be be paid for the escrow and paper work. So unless you are exchanging gold for gold, it seems you are facing state and fed capital gains. Hopefully you have receipts with the price you paid or else the IRS will tax on current value, I do believe. Even trading female horses for male horses is not "Like Property"
I would agree this probably is not a like kind exchange. However, I would not categorize it as falling under the collectibles rate, rather regular investment cap gains rate if the value of the coins is predominantly bullion value. Too bad, selling a home for gold, the other way around, and you can avoid most of the taxes on the profits.
You need to talk to a CPA tax lawyer to find out the right information, before you liquidate it. I know it has been in Georgia, that when you buy gold coins that there was not any tax. But it could be on capital gains, depending when you bought the gold. Good luck.
Always check with your tax professional of course. FWIW I am a CPA and have done many returns such as this, but always deal with your ta person, and don't listen to anything on the internet. Chris PS Btw Jim it would have to be an extremely narrow circumstance indeed for a male horse not like kind to a female horse. I would have filed the like kind paperwork on that one, and fought it at least through the initial tax court case. It would be interesting as to the specifics that made them not like kind.
Local cattleman mentioned it a time ago, but found this seemingly backing. [h=3]Like-Kind Exchange[/h] But I have none to exchange
I would just take my $300K in gold to the National coin show and sell 3-4 ounces to as many different people as I could. Unless they all track and report individual purchases, in which case I wouldn't do that. Or, you could just sell it to me REAL cheap and report it as a loss on your income taxes and let me worry about the net gains when I decide to sell it...
Hmm, well I have filed farmland as a like kind to apartment buildings, and similar. The only case I could see if you had female animals not being like kind to steers or the like. Basically a non-breeding asset could be construed as not like kind to breeding stock. Btw be extremely careful in making your decisions off of IRS regs. Like most tax regs, they usually are the most conservative reading of law, and frequently do not agree with case law. Basically all tax authorities publish Regs making taxpayers believe a lot more is taxable than the actual law taxes. Sorry, I know completely OT and of interest to maybe 3 people here, Jim and I being 2 of them.
I am surprised that no one has asked about exchanging spouses yet? Who would want a like kind there ! and that is the end for like kind.
It makes me laugh. Those ambiguous IRS rules listed above that have to be written in such a weasel worded way because of the entire farce of making gold coins "legal tender" and then not treating them as legal tender, UNLESS, it is to the government's advantage. i.e. IRS says a AGE is worth $50 if it is used for payment, but it's worth gold value if it is for capital gains. Apparently there is no way to tell from those rules that trip all over themselves. Post #12 has the right answer.
With this statement could you not just pay for your house with them as make it a save/save. Explain to the seller that you want to do this and he should price the House at $8570 bucks. Then pay for it with $50 gold pieces. That would save them the capital gains on the home and you also. Plus your future tax's on the home. lol Just an idea but good luck pulling it off.
As fatima says, this seems perfectly obvious. Pay for the house with legal tender coin, and report the legal face value. As a few minutes' research online will illustrate, though, it doesn't fly in court. Lots of highly motivated people have tried to do this. All have failed. You may believe that you're smarter, or luckier, or more in the right than any of them -- but it's foolish to bet on it.
Howdy, Actually, this is a good idea for whatever amount you can convert without having to have the transaction reported. If you can convert $50K to cash, that's almost a 20% down payment AND you only have to deal with the Blue Meanies on $250. Post 9/11, banks are having to keep track of more transactions and $10K seems to be one of the trigger points. Others around here know where coin dealers have to start reporting. Indeed, every state is different in how they treat their coin and bullion sales. Ours is tough on crime and fencing so you're name and drivers license goes on everything. You ARE going to have to pay some taxes if you've realized a gain. The IRS is very clear that the sale of ANY asset that results in a gain IS a taxable event. Period. The easiest way to deal with it is to spend a few bucks and hire a CPA/tax attorney that knows bullion/coin sales. I would not recommend that you attempt to take this transaction completely 'off grid'. You might get away with it but if you don't, they can be very unpleasant to deal with . . . and they never forget. In my 63 years I have found they appreciate and it your solemn duty as an American that you do your best to creatively minimize your taxes. The tax code is a great game and it rewards those who play it well. However, you do not ever lie to the IRS. It's like peeing into the wind. You simply do not do it. good luck, peace, rono
