I began this thread to discuss the need to abolish taxes if gold is used as currency. Here is a quote from Dr. Ron Paul: "I've been asked so many times about what we should do with the system now. If I don't like the paper money and I don't like the Federal Reserve, what would I do. And it generally is I wouldn't get rid of the Federal Reserve in one day, because it would be very very chaotic. But I would like to fully legalize competition in currencies. And I think some of these currencies have .. or gold has trouble in really developing, getting people to use them, because the tax collectors can still come. If you're using gold coins and your gold coins go from 300 dollars a coin to 400 dollars a coin, you could be taxed on the appreciation of that if you sell those coins and put it into paper. So, you have to eliminate all taxes. Sales taxes and capital gains taxes on gold coinage if we want to do anything to encourage the use of gold as a competing currency." Ron Paul during an interview with PlanetGold.com archived here.
I buy and sell a lot of US gold and silver coins on eBay because in the US gold and US silver bullion is not taxed and thus I don't need to report it as income, my supplier only sells silver in 1oo oz.s and gold in ten ounces at a time, and most regular joe's can't afford to buy 100 ounces at a time and thus I can get $5.00 an ounce more than market price for a US silver eagle on the average.
Good for you. Here in Russia any income arising out of the sale of gold is considered as capital gains, and we have to pay the capital gains tax on it. I haven't sold any of my accumulated gold... so I haven't yet payed any cap.gain to the govt. But in future, I'll have to.
I live in the USA but if we buy the US coins we pay capital gains tax on investments but the coins I buy have a face value of one dollar for one ounce silver coins and if I pay 20.00 per coin I'm going in the hole on the purchase same with the one ounce gold Buffalo a fifty dollar face value. But if I was to but was to buy Kurggerands or some other country I would have to pay the tax on the whole amount if it was a gain, I got hit by a audit from the IRS from a silver broker who was upset at me because I switched brokers within the same company but I took my profits in gold buffalo's I traded $18,500.00 for $500.00 gold face value. I didn't make the rules I just manipulate them to work in my favor. I guess that is why I retired at 38 seven years ago.
Hmm.... how did you dealt with the IRS guys.... how much fine did you paid? It was blatant lack of professionalism from the silver broker.. to say the least...
