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 Replies: 82 / Views: 6,379 |
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Pillar of the Community
Australia
7096 Posts |
Silverhawk74, you are at the heart of small business. You are an entraponour keep at it. But do listen to Bigfred He sounds like he knows quite a few things about buisness. Take all the information given and do your own assesment. In the end the IRS will make their own assesment, It dosen't hurt to have writen records of everything to show them. ( A bit of bull  goes a long way)  Good luck to you in your endevours  |
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Pillar of the Community
United States
2168 Posts |
Just wondering I have heard that all sales of PM are a taxable event. Not sure though. I guess if done in business type fashion then a business but for some reason I thought they are in the capital gains or loss sectioN if just an occasional thing. Does anyone know on this?
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Pillar of the Community
United States
548 Posts |
If you bought a gold coin on 9/10/2001 for $300 and sold it this past summer for $1800, you're required to pay taxes on those capital gains. Whether you're a business or not.
I wonder how many actually pay.
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Pillar of the Community
United States
667 Posts |
The underground market.  Like the old saying under the table. About the only way to get 100% of the taxes would be a flat national sales tax. I doubt most small investors report any gains on silver or gold sales. Too many tax laws and you know the IRS wants all their tax dollars. |
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Rest in Peace
 United States
9104 Posts |
Quote:
Just wondering I have heard that all sales of PM are a taxable event. Yes, but that's necessarily bad, especially if you bought as an investment and sold at a loss (reduces your taxable income). Otherwise, they're taxable either as an profit on investments (same as stocks or bank interest) or as biz income (buying and selling PM). |
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Pillar of the Community
United States
3670 Posts |
"If you buy ten trains for $50 each and sell eight for $800, your profit is $400, not $300, because you still have $100 worth of trains left in inventory."
Thanks BF, again most key info there....
And thanks Trout, I do keep all info filed in comp, and I even have ever single receipt from every single shipping transaction from this past year, tucked away nice an neat in my glove box....
Thanks again all, as I have only been stocking for two years, and selling for 14 months, so this is all new to me....
Edited by Silverhawk74
12/22/2011 2:34 pm
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Pillar of the Community
United States
2335 Posts |
Here's something else to consider....gold & silver are classified as collectibles by the IRS. That includes physical & ETF's. The long term capital gains on investments is capped at 15% but it's 28% on collectibles. If you hold your collectible for less than a year you pay tax on it as if it is ordinary income. Here's an excerpt from an article I found online: Quote:
Sorry, my illiquid but weighty friends, gold is a "collectible." So are silver and platinum. And in the eyes of the IRS, which takes its cue from Congress, a collectible is not an investment like stocks or real estate.
And I'll bet you didn't know that.
Under federal tax law, "collectibles" include:
Works of art.
Rugs and antiques.
Metals and gems.
Stamps and coins.
Alcoholic beverages (that means vintage wines and rare liquors).
Any other tangible personal property specified by the secretary of the Treasury.
Normally, when you sell a capital asset you've owned for more than one year, your tax rate is capped at 15%.
But when you sell a collectible, tax law caps your maximum rate on long-term capital gains at 28%, not 15%. In other words, on a $100,000 gain (lucky you!), that means you don't pay $15,000 to Uncle Sam, you pay $28,000 -- an extra $13,000.
If you hold the asset for less than a year, it gets worse. Your gain becomes a short-term gain, and it's taxed at regular income tax rates. That means a rate of as much as 35%. On a $100,000 gain, that's $35,000 you pay to the government. Ouch! |
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Rest in Peace
United States
9104 Posts |
trdhrdr-
Keep in mind those are the maximum rates. On $15-20k income, the tax will not hit the top bracket.
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Rest in Peace
United States
9104 Posts |
Keep in mind, capital gains don't apply to a business, so even if you bought silver ten years ago as inventory and sold it in 2011, it's regular profits.
You may consider a LLC to keep things separate.
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Pillar of the Community
United States
4008 Posts |
Fredd... about those taxes... when one buys shares of stock and later sells some of them, they can choose which shares to sell and thereby managed their tax liability somewhat. Can the same thing be done with, say, ASEs? Or is it one of those FIFO type of deals?
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Rest in Peace
United States
9104 Posts |
Ed- I think if you can identify specific rolls or singles as having been bought at a price, just as a nickel you bought being different than a quarter. If you just dump all your ASE together, then you prolly have to choose average, FIFO, or LIFO. Like cost vs accrual bookkeeping or a fiscal vs calendar tax year, once you choose one, you have to stick to it. Run anything past an accountant before you set it in stone. I'm not a bean counter, but with a BBA and 40+ years of running a business, I hope I've picked up most of the important stuff. |
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Pillar of the Community
United States
2335 Posts |
Quote:
Keep in mind those are the maximum rates. On $15-20k income, the tax will not hit the top bracket.
Keep in mind, capital gains don't apply to a business, so even if you bought silver ten years ago as inventory and sold it in 2011, it's regular profits. Those are both good points I probably should have mentioned. A lot of things depend on an individuals situation. |
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Rest in Peace
United States
9104 Posts |
Which is why an accountant who specializes in taxes (not a storefront tax prep) is worth the money.
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Pillar of the Community
United States
4008 Posts |
Quote:
I'm not a bean counter, but with a BBA and 40+ years of running a business, I hope I've picked up most of the important stuff. Thanks for the comment, Fredd. I would think that with your experience, you have probably picked up everything that is worth picking up! |
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Rest in Peace
United States
9104 Posts |
Here's a good one. If you are over so many miles from home on business and stay overnight, you get a per diem allowance for expenses. Like the standard deduction, you don't need any proof except your hotel receipt to prove you were there.
I spent four days in Chicago at a distributor's convention where they provided meals, entertainment, etc. I still got to write off $300 in "expenses".
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Replies: 82 / Views: 6,379 |
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Posted 12/22/2011 06:04 am
