Is junk silver NOT taxable like the eagles??

[SILVERKING16Member]

I know that a huge advantage of buying Eagles is because when it comes time to sell you don’t have to pay taxes because it is a legal US tender….Does the same apply for Junk??

 

SK16

[Silver DollarMember]

Absolutly.  In my state there is no sales tax on bullion transaction either

[AGXIIKMember]

Silver King  I think you are referrring to income taxes on capital gains if your eagles or junk bullion buy prices are lower than your sale price.  I know that in Nevada Junk bullion AND Silver Eagles have a standard 7.5% sales tax when bought from a dealer.  Capital gains taxes are more complex and were discussed in a post I made on the old SD site.  In short, if you sell silver of any sort at a price more than you paid for it you will have a gains tax  If the holding period is less than a year you could end up paying an ordinary income tax rate.  If you hold it longer than a year you pay capital gains at a state and federal level. From conversations at my local dealer they will issue a 1099 on silver coin sales of greater than 1,000 oz.  I dont know if they do that for junk bullion but the law states that if the silver sale is in the form of rounds, Eagles or bars, and the total is 1,000 oz or more, they will issue the 1099  Make your sales acccordingly.  I do not know of any bullion dealer who sells over the internet is collecting sales taxes if they sell outside their  business operational base.

[SILVERKING16Member]

Thanks AG, yeah i was talking about once you sell your items, what the tax ramifications were. I follow Mike Maloney alot and he says that his preference is the Eagles because if you sell them the buyer does not have to report a 1099B form because they are a legal form of tender, where as a bar or round is not…i think the whole tax situation is just too confusing me for me, ill cross that bridge when its time…LOL…..until then, keep stacking! 

SK16

[aragornsosMember]

What is this “sell” you speak of?  Does not compute with my “stack”.

[MammothMember]

Kinda related topic – a friend inherited some 1-oz Gold coins, and I called APMEX to help him sell these.  The APMEX salesperson I spoke with said that above a certain dollar amount, they had to report their purchase; however when I asked what that dollar amount was – he suggested that I speak to my tax advisor.

Wanting to fly ‘under the wire,’ and since he found these coins in his father’s safe-deposit box, he ended up selling the Gold through Craigslist.

One reason to consider purchasing fractional Gold is that if it really does go to $5,000/oz then it will be easier to sell smaller denominations.

[UglyDogMember]

AGXIIK gave a good run down.  I’ll add that the misunderstanding comes from what’s ‘reportable’ and what’s ‘taxable’.  Those are two different concepts.  All gains are ‘taxable’, but gold eagles (and pre 1933 gold) sales and all silver including bars, etc. (except junk) are not reportable.  Junk reporting rules are unclear that’s why some dealers say $1000 face value and others say $10,000.  Sales tax is an entirely different matter and that varies from one state to the next.  Reportable means the dealer will take your social security number and you’ll get a 1099B at the end of the year. 

[zellMember]

From IRS publication 17 (2011)

“Gold, silver, stamps, coins, gems, etc.
  These are capital assets except
when they are held for sale by a dealer. Any gain or loss you have from
their sale
or trade generally is a capital gain or
loss.”

So the way I read it, if the sale is from a dealer gold and silver are NOT capital assets, but the IRS fails to give them a classification. As usual trying to use IRS guidelines is an exercise in mind reading. Try calling them to get an answer is even a bigger joke. My general rule on these transactions is to establish the sale price (the easy part) then establish the basis (the tough part) then mathematically let the gains or losses show themselves. 

• This reply was modified 10 months, 3 weeks ago by  zell.

[PatFieldsMember]

Zell, I’ve actually read the ENTIRE ‘Income Tax Code(s)’ and
determined that their application is particular to Congressional jurisdiction,
which is why the enforcement agency is called the … Internal Revenue …
Service. For a brief while, that was glaringly apparent, when State governments
argued that their government employees were jurisdictionally exempt from
‘Income Tax’.

It all came together for me when I obtained a copy of ‘Letters of the
Presidents’ and discovered that George Washington sought and received
permission from the Senate (Representatives of the State Legislative Bodies),
to overlay exclusive federal ‘district’ jurisdictions, coincident to (not
‘with’) those of the States, in order to collect the ‘Whiskey Tax’.

 ‘Patriots’ have been
arguing for decades that the federal body has been operating under rules of
‘Military Occupation’. However, nothing else but private Congressional
Jurisdiction, provided under Art. IV, Sec. 3, cl. 2, more completely covers
EVERYTHING, From the question of credit-money (EXPLICITLY FORBIDDEN, with exhaustive
documentation from the Constitutional Convention); the endemic fringed flag of
the administrative office; driving license;  even ‘interpretation’ of the ‘Commerce Clause’,
when seen as applied under Congressional jurisdiction, becomes clearer.

More to the point of the thread, I also recognize
that reliance on government’s indicia of ‘guarantee’ stamped on coin or printed
on bills, makes … its … use a cause for Lawful levy. These stampings are
tolerable, as long as the ‘charge’ (tax) for using their ‘eminence’ is kept
within reason. In reality, then, if we forego government’s ‘guarantee’ and
trade with raw metal as media, outside of Congressional jurisdiction, no tax
can inure on the transaction because it’s purely barter of value for value that
defies any calculation (or even definition!) of profit or loss.

[zellMember]

Pat, Your point is well taken. The US has been under receivership since 1933 (maybe 1934). Until we can end this and restore the Constitution, I will try to play by their rules. End the Fed charter (up in 2013) and their collection agents (IRS) will be archived forever.  

[XizangMember]

New guy here, so please go easy on me.  

I agree the Constitution is all but dead.  It might as well be for all the respect it gets from the federal and various state governments.   I hear the funeral is next week.  Ron Paul will be officiating…

I’m temporarily in (gasp) Nebraska.  They have a 7% sales tax on all silver and gold bullion and coins – even US Silver Eagles.   Which is not surprising, as most governments have overspent and are now starting to get aggressive with pumping up their revenue streams.  So don’t expect any taxes to go down or go away.  Taxes are like cancer – they will only grow and get worse until the hose (us) dies.

Panama, anybody?

• This reply was modified 10 months, 2 weeks ago by  Xizang.

[XizangMember]

Oh, and lots of luck with ending the Federal Reserve.  Our federal government has become so bloated that the only way it can survive (at a deficit) is through constant suckling from the Central Bank, whose bankers simply print or create in their computers the money the government is addicted to.  Without the Fed and the bankers behind it, the federal government would immediately collapse.   Which I think is about to happen anyway, as everyone realizes we’ve been sold false promises and fake money.

[Author]

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