Cashing out your bullion when its time, tax question ?

Always use ebay as a last resort for purchases, i actually sold on there for over
10 years but with all the fee,s your hard pressed to make (CENTS) rather then
Dollars i will admit my last to purchases were on the bay only because it gave
me another payment option over the sellers website.

 

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One other point. If you Grandpa gives you a say $1000 worth of coin/bullion, the $1000 would be the basis of value. When you sell them, say for $1200, you would be taxed on the $200.

 

If anyone wants to play games with the IRS, have at it. It won't be my rendered remains that are left spread all over the ground.

 

Not playing games, just establishing the rules, so you don't get in trouble.

 

Not suggesting you are. Just a general view of how I feel about trying to slide one by the tax people, who are not known for their sense of humor. Do it by the rules -- I agree with you totally!

 

That's why I made the other posts. If you stick by them, you will be doing no wrong.

With that said, my comment on the fraud should not be construed to mean that you can get away with fraud. It just means that the IRS has certain thresholds with which they will/will not pursue it. In areas like New York City, they have so much going on, they can't afford to process small cases. Say a million or so. Too many bigger cases to go after. In some place like Colby KS, a $100K case might be worth it, but it costs so much to do it, they may or may not pursue. However, if they decide they want to make an example of you, the cost/benefit may go out the door.

The mechanics of not reporting income/penalty thing works like this:
You don't report income.
If the agency/person that gave you the money reports it to the IRS, and your income doesn't match what you put on your return, they will send a letter stating that they don't match, and give you a chance to verify/change.
If you don't do that, they will audit the return. Either thru exam (without you present) at a service center, or have you go to a local office for the audit.
If it is found that you owe, you will have a chance to pay tax/penalty/interest.
If you don't pay, they will send several CP (Collection Process) notices demanding payment.
If you still don't pay, they will send a final demand for payment and levy you.
At any point depending on how much you owe, they may or may not file NFTL (Notice of Fed Tax Lien).
Depending on how much is due, they may kick you out to a Revenue Officer who will go thru the notice, final demand, levy, then seizure process. And can summons bank records, people, etc.
If during all of this it is determined that you are actively evading taxes, and it is enough to be grievous, they will pass it to CI (Criminal Investigation). The Revenue Officer will work with CI to build a case. If it is determined to be true and worth pursuing, it will go to court.

 

That's my story, and I'm sticking to it.

 

What about the 'gifting' thing? I thought you could 'gift' family members up to $13,000 without the goobers sticking their noses into things.

 

You can.

 

Thank you Allan.......

 

A gift is any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return.
The general rule is that any gift is a taxable gift. However, there are exceptions to this rule. Generally, the following gifts are not taxable gifts:
- Gifts that are not more than the annual exclusion for the calendar year.
- Gifts to your spouse.
The annual exclusion for 2014, 2015, 2016 and 2017 is $14,000.

 

But if you turn around and sell that gift, the profit is taxable.

 

Everything is taxable. If they could measure your exhilations they would impose a carbon tax!

 

Yes, after $14K

 

So if you went down and cashed out your bullion and gave it toyour mother it
wouldnt be taxed ? also would she get taxed on that income ?

 

Gifts to the kids don't count?

 

No, the profit above what the gift was worth at the time of transfer.

 

Sounds like a tax loophole. If I "gift" $13kof silver to my wife and she sells it for $13K then it is it not taxable? She can then pay my living expenses. That obviously does not sound as if it would work. Where's the catch?

 

Up to $14K.