1099 For Silver / Gold Buying

It's not due to kick in until 01/01/2012. If and when it does, transactions over $600 must be documented on IRS Form 1099 when buying/selling to a business. The way I understand it, collector to collector transactions will not be effected.

There are efforts under way to raise the $600 threshold, thereby relieving small businesses from undue paperwork burdens. I'd imagine the threshold will go to $5,000 but we'll have to wait and see.

As I recall, (when it kicks in) it is not a TRANSACTION of $600+, it is CUMULATIVE transactions of $600+ in a year, meaning the dealer (or ANY other business owner) has to keep track of all your sales in case they total $600 by the end of December.

Hope I understanded that wrong. :)

One of the statements above holds true. You will have to report via a 1099 by having $600.00 or more in purchases from the SAME place in the course of one tax year. However, since retailers/dealers have to keep track of the cumulative purchases of everyone, each time you buy, it will have to be recorded. We are talking name, social security number, everything.
This will increase the benefits to owning/buying 1oz to 5oz pieces to circumvent the 1099. I would suggest converting large bars to smaller ones. There will be a major increase in competition in places such as flea markets, estate auctions, and of course private/underground sales. I do not know how this will effect purchases from mints/dealers originating from outside of the country.

The most disturbing fact to me is Big brother now having a list of who owns and holds silver and gold from this point on. Remember the gold confiscation act? Do not think for one second if the dollar would begin it's collapse, our national economy is in grave danger, that the government could not, or would not do this again.
One reason is was only mildly successful at the time is because it was so hard to determine who had gold, who did not, and people stashed it away. Now they could knock on your door, show you the forms, and ask you why you have not turned in what the government audits show that you have.

I buy silver all the time. I know I will be spreading my purchases around during the course of the year to stay under the 600 mark at each dealer. I consider this 1099 to be rather invasive of my privacy.

There is some action within congress right now to change, and or get this repealed as it was underhandedly hidden within the thousand plus page health care reform bill.

Well I served my country and am a retired Marine but what has become of our country our founding fathers would turn over in their graves shame on all our representatives.

It is a BIG game and we the middle class are the pawns in this game time for people to wake up and say enough is enough if you study the laws of the land we can control the government I say kick them all out don't get me started.

biggfredd,

I think ajejay1974 is not referring to a repeat of making a list of who owns PM and how much of it. He is probably referring to the confiscation of gold which did indeed happen.

Personally, I don't think the government would do such a thing because the circumstances are different. The world was on a gold standard back then and the government owning gold helped bolster the currency. With a fiat currency gold is nothing more than a high value commodity. We can't pay buy food or pay debts with it. It's not money. I suppose the government could sell its own gold holdings as a commodity to other governments and entities but it would solve little. Otherwise, I think greed would have prevailed and the government would have done it a long time ago.

(An aside: for the current monetary problem to go away the Fed needs to stop printing money and deflating it. In parallel, the government needs to slow the spending).

The government can pass a new law that would change what money is and make gold king. Once that happens then you know something fishy is coming our way. Printing money and fractional reserve banking is a lot easier to work with than gold. All you need to do is add a few more zeros in a spreadsheet (sort of). The government doesn't want to lug metal around.

I see the 1099 as another way for the government to tax (and punish?) a certain behavior to raise money for itself (and discourage the behavior?). If the law sticks then fewer people will buy gold and other PMs and the government will not get the tax income it hopes for.

Someone out there will challenge this law for sure. It's just a matter of who and when.

I would like to know who added in the 1099 form text into the law? Was it by someone who doesn't own PM?

-- Boris

I guess make sure to save receipts so if/when you sell you can prove your cost basis for capital gains reporting.

I found this link on Wikipedia.

http://en.wikipedia.org/wiki/Executive_Order_6102

Technically, you are correct. The government did not forcibly confiscate gold. It's not like they went door to door demanding your gold. Ownership was outlawed and punishable. The question is this. If the government did know that you owned gold and kept a record of it in some shape then would they mine those records and notify you if they outlawed gold possesion agan?

Just some food for thought.

-- Boris

That made me think of a great old story Thunder about gold prospecting in 1849 California....

There once was a show I watched a few years back, an HBO short series perhaps, where some prospectors were finding nothing and some others a few feet away pulled out a massive gold nugget. One massive nugget that would have rated high on that largest gold nugget website I posted a few weeks back....

The jealous two attacked an quickly killed the other two stealing their gold nugget. Later being pursued they made there way to the river where one got onto a canoe, and the other was lagging a bit behind requesting a lift onto the boat as he was wading through the water. The one on board swung the paddle knocking out his partner who sank to his death. But the heavy nugget in his backpack caused him to loose balance, and he fell off into the water sinking to the bottom, refusing to remove that backpack and swim free, drowning as well....