Cashing out your bullion when its time, tax question ?

Capital gains:

https://www.irs.gov/taxtopics/tc409.html

https://www.irs.gov/uac/capital-gains-and-losses-10-helpful-facts-to-know-2

 

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If so, and I assume you are correct, I stand down. Acronyms oftentimes get dumbed down as they go along their way. (USAPATRIOTACT) But I do believe it covers all transactions in these amounts being transferred regardless of what the cause, including P.M.s being cashed out. Especially so if you have P.M.s in a 401K and cash them in. It's all about a paper trail to make sure you are not a terrorist. But hey, if I'm wrong I'm wrong and I've been wrong before.

 

There goes my profit...LOL

 

Good old Uncle Sam.

 

This threat has raised an interesting question in my mind. I have bought bullion at coin shows and only once was I offered a receipt. I have never sold. If a dealer buys bullion from you at a show is it normal for him to ask for reportable information?

 

Welcome to the underground economy.

 

Yes, technically buying/selling bullion you should be putting on your taxes. there's been a few threads here that I've mentioned it and also in PMs to people. Though few will because if they did the little profit they make would be even much less.

Even wonder why most coin places like cash and don't give receipts?
There's a few coins places I go to and I recall, the first time I was there I got a receipt. After that never a receipt when I use cash. And you can haggle on the price with cash, not with credit.

So technically when you sell try not to sell too much at one time to the same place.

 

It's $10,000.

Form 8300 and Reporting Cash Payments of Over $10,000
Form 8300 – Is Your Business Filing the Proper Cash Transaction Forms?
Has your business ever received a large cash payment, and you were not quite sure what your reporting obligations were regarding that large payment? The general rule is that you must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if your business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions.

That is true, but they have to prove it.

Yes, but they won't prosecute unless you are talking a lot of money, and that varies by area of the country (cost of living). Unless....they just want to make an example.

 

also make sure that you pay your proper state tax if you buy general items over the internet and the vendor doesn't collect tax for your state ...

 

Oh Yes! And don't forget to claim the income from garage sales........

 

Of course, and don't forget the lemonade stands as we say that facetiously ....

 

If you owned it for longer than one year, your profit is taxed at the "long-term capital gain" rate, which is usually lower than the rate on "ordinary income" like wages and salaries. If you didn't hold it longer than one year, the "ordinary income" rate on your profit applies.

 

Oh that's right, I forgot about that. Kindly disregard my previous comment in this thread.

 

Well, up to 28 percent of it.

Suppose you bought an ounce of gold at $1050, plus $10 shipping. You then sell it on eBay at $1250, and pay $125 in final value fees, $35 in PayPal fees, and $10 more to ship it to the buyer. Your cost basis is $1050 + 10 + 125 + 35 + 10 = $1230. How much do you owe the IRS? 28% of $20, or $5.60. (At most -- if you're in a lower tax bracket, you'll owe less.)

I've seen any number of anti-tax diatribes that try to claim you'd be taxed 28% of $1250 on this transaction. That's... well, I'd say "a misconception", but I'm pretty sure that "lying" is more accurate.

 

That's the way if works. That's why you keep receipts for everything. Mileage to shows, food, motels, anything related to the eventual buying and total cost.

 

Yep.

Now, if only eBay charged FVF on only your profit, and not the entire selling price...

 

Are you going to send the documentation of your cost to Ebay when you make a sale?

 

LOL

 

Sure, why not? They seem perfectly competent when dealing with documentation from sellers.

 

Wish I never read this thread...