A trip back to 1964 proves Silver creates wealth

You are right, but eventually if you want to do anything with any of it, you must report it.. And then you could be in trouble if they thought you might have been evading your taxes.. Or the decedents.

Such a coward, me.

 

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As Lucy said, you are giving your heirs a major headache by not reporting it in addition to breaking the law. Now most estates are usually too small to be hit with an inheritance tax. As of this year (it is about to change) it is 5 million dollars.

So lets say the estate is large but is under the limit and has a modest stack of gold valued at $100,000. If you report the gold, the new owner takes possesion of the gold and any capital gains realized by the original owner are wiped clean. The new owner has a cost basis off $100,000 and is only responsible for capital gains from that point forward. So now two years go by and the gold is now worth $120,000 and the new owner sells. If all was above board the new owner would be liable for 15% of the $20,000 profit or $3,000. If it was not above board and you had no records, the IRS could claim a cost basis of whatever they wanted and it would be up to you to prove them otherwise.

So, it is not only illegal to do what you are suggesting, it is also not a bright idea.

 

"Must" is not the same as "Supposed to", because a person can do stuff with a pile of PM without reporting it.

In my case, this whole discussion is irrelevant, because I won't be rich enough for my family to pay inheritance taxes on my estate when I tip over. I plan on enjoying my retirement!

 

And, an estate could be reopened if it was determined there may have been some missing worth.. I think that is true, but not positive. An accountant would probably rather avoid that..

Maybe I'm way off track here, by now. Sorry

 

You are 100% correct. Its always amazes me how many people think coins and gold and silver are tax free. Yes here in South Dakota there is no sales tax on these items but they are still taxable to the federal government under capital gains and income tax.

 

I never said being a tax cheat is a good thing. Those are your words not mine. I give all my taxes to a CPA just to be sure. Transactions between common folks happen all the time. If you think every time we breath we should tell Wall Street/Big Banks or the Gov't then Communism is for you. I knew a few men who were the local Commie snitches in old Cold War days in East Germany, Lithuania, and Afghanistan. Very sad places to live during that time.

Who is to say what the true value of an item is and who could even verify what capital gains are made or lost? After all we all hang on to all the receipts for goods that we buy for life. I live in the real World not the Socialist States of America.

If you like paper....good for you. I think it's getting grossly overrated. I see more and more economist with half abrain telling people to get out of paper and into tangible goods and not just PM's. I am not advocating anyone to do anything. I can say that I am starting to see more and more of this in the last few years. The one thing our local hippies/greenies and preppers seem to have in common is bartering and trading.

Sadly, the way the fiat USD is going I see it happening even more in the future. Read about Greece and its happen there on a mass scale (60 Minutes Show). Again, I do not advocating being like Greece (fact, I so do not want to be like those fools), but that is the road the US going down.

 

Sorry if you believe I am communist, but the idea of calculating profit this way has been here since the advent of the Income Tax system. Just because people may break the law for decades or generations does not mean its still not against the law. Moonshiners have made illegal whiskey for decades, yet if they are ever caught they are still going to jail. Their decades of law breaking does not make their crime less severe, rather more severe.

I only brought up the point because you were using tax evasion as a huge benefit of buying PM. I don't think a felony has any place in a financial alternative discussion.

Maybe its just me.

 

I was just saying many people wouldn't bother. And I'm fine with that. Means nothing to me right now since I only buy.

 

Whoa now, up until now, no one has said anything about communism. To keep a country running, you need money, and counties get that money from taxes. To tax people with some degree of fairness or consistency, the government needs to know your income. That is just the way it is. You may not agree, that the government needs to know about your assets that are producing capital gains, but that is the law, and there is nothing communistic about it.

 

I am not saying tax evasion again that is your words.

I am saying there is a huge benefit of having PMs (and other tangibles) that Wall Street, Big Banks, and the Gov't do not know about and it's your private business not theirs. Stock (paper) is 100% EVERY ones business. There is no PRIVACY with paper. That is a huge benefit to many growing number of common folks.

 

What you are saying, makes no sense. If you are stacking PM's and sell them, if you had capital gains, you cannot keep them private and not be guilty of tax evasion. What are you planning to do, just mail them a check with no explanation?
Like it or not Capital Gains ARE the governments business and if you pay less, the rest of us pay more.

 

You are the one sir who described a friend trading something and "the taxman" not knowing about it. You DO know that even if a 1099 or other document is not given to you does not negate taxes, right? You DO know that even trades can generate a lot of capitol gain taxes due the IRS, right?

 

I have never sold, given, or transferred a PM. My PM's are insurance only. I will take them to the grave, give them to a Salvation Army XMAS bucket, or throw them into the river. My choice.

Financial Security = Financial Privacy

 

Seeing someone trading at the gun show, on Craigslist, ebay, or friends above is on them. I do not care if they file a 1099 or not it's not my taxes. I am not the World's policeman. I stopped being that the day I retired from the current wars.

 

Maybe we shared the same dirt then sir. Sorry if I am taking this thread OT.

 

I hope we did not share the same dirt as my AO was nasty I hope I am not being rude. I think I am not communicating my idea very well though. I am not into tax evasion, fact I love this Nation very much. That being said I do seek out privacy.:yes:

 

Silver, maybe it was A misunderstanding, or maybe you had a change of heart.
The very first statement that started this was

"government does not take a fee to buy and sell"


Have you changed your opinion on this?

Like we said, there is capital gains fee that must be paid if selling. so there is really no way to keep it private and you specifically said sell. If you plan on never selling except in an emergency, are you now saying, you would disclose you PM holding and pay the required fee (taxes)? Of course if you never sell, you would not have to disclose you PM holdings, except in states that require you to pay sales tax initially.

You will still need to keep records though. You see, if you were
To sell for an emergency, you would need you records to prove a cost basis, since you only owe taxes on the capital gains. Without records, the IRS could choose whatever they want as a cost basis and it would be ridiculously low. The burden of of proof would be on you, to show otherwise, or you will be paying much more tax than you may have needed to if you kept records.

 

Very true. Actually, (as an aside for anyone curious), the IRS by default assumes you have zero basis in anything you sell. You have to prove to them you did not receive it for free, and therefor owe tax on 100% of the sales proceeds.

Btw Silver, I value privacy highly as well. I very much am a libertarian, my comments were simply to warn that taxes can still be due even on a trade. Yes, many people ignore this and do not pay taxes, but trust me, the government is broke and very soon tax enforcement will get much more attention.

 

That's very sad.

 

From a legal standpoint you are not guilty of tax evasion until you are convicted of such in a court. Until that happens you have the absolute right to make your argument to the court, if it even gets to that point as to why your gold sales do not constitute taxable gains. While your chances, IMO are pretty low that you would prevail, this is the way our system works.

People have the right to keep their assets out of the finance system (for many reasons) and owning PMs is a great way to do it.