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Posted 05/25/2012 10:54 am
Is it Just me or can I not find an edit post button?
Just wanted to add this.. it pretty much summarizes everything said in my link:
Just wanted to add this.. it pretty much summarizes everything said in my link:
Quote:
Personal-use property
When you dispose of personal-use property, you may have
a capital gain or loss. To calculate this gain or loss, follow
these rules:
â- If the adjusted cost base (ACB) of the property is less
than $1,000, its ACB is considered to be $1,000.
â- If the proceeds of disposition are less than $1,000, the
proceeds of disposition are considered to be $1,000.
â- If both the ACB and the proceeds of disposition
are $1,000 or less, you do not have a capital gain or a
capital loss. Do not report the sale on Schedule 3 when
you file your income tax and benefit return."
When you dispose of personal-use property that has an
ACB or proceeds of disposition of more than $1,000, you
may have a capital gain or loss.
Adjusted cost base (ACB) -- usually the cost of a property
plus any expenses to acquire it, such as commissions and
legal fees.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Based on this wonderful discovery, I would advise Canadians to purchase only bullion that you expect to be saleable for less than 1000$/unit in order to avoid any capital gains on your bullion.
Given my long-term price targets of $6000/oz for gold and $300/oz for silver, that would mean 5 gram bars of gold (or smaller), and 3-oz bars of silver (or smaller).
Since the capital gains tax in Canada is based on 50% of the gain, taxed at your personal marginal tax rate (for the average person, around 30-35%), a typical capital gains tax on bullion would be about 15-18%. The tax loss of 15-18% upon sale of a 100oz bar of silver (which would be bought and sold for considerably more than more than $1000) outweighs any savings in terms of the lower premium over a 1oz round.
Therefore, this analysis suggest that Canadians should only be buying 1 oz silver, 1/10 oz fractional gold coins, or 5gr gold coins to maximize their eventual gains.
Personal-use property
When you dispose of personal-use property, you may have
a capital gain or loss. To calculate this gain or loss, follow
these rules:
â- If the adjusted cost base (ACB) of the property is less
than $1,000, its ACB is considered to be $1,000.
â- If the proceeds of disposition are less than $1,000, the
proceeds of disposition are considered to be $1,000.
â- If both the ACB and the proceeds of disposition
are $1,000 or less, you do not have a capital gain or a
capital loss. Do not report the sale on Schedule 3 when
you file your income tax and benefit return."
When you dispose of personal-use property that has an
ACB or proceeds of disposition of more than $1,000, you
may have a capital gain or loss.
Adjusted cost base (ACB) -- usually the cost of a property
plus any expenses to acquire it, such as commissions and
legal fees.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Based on this wonderful discovery, I would advise Canadians to purchase only bullion that you expect to be saleable for less than 1000$/unit in order to avoid any capital gains on your bullion.
Given my long-term price targets of $6000/oz for gold and $300/oz for silver, that would mean 5 gram bars of gold (or smaller), and 3-oz bars of silver (or smaller).
Since the capital gains tax in Canada is based on 50% of the gain, taxed at your personal marginal tax rate (for the average person, around 30-35%), a typical capital gains tax on bullion would be about 15-18%. The tax loss of 15-18% upon sale of a 100oz bar of silver (which would be bought and sold for considerably more than more than $1000) outweighs any savings in terms of the lower premium over a 1oz round.
Therefore, this analysis suggest that Canadians should only be buying 1 oz silver, 1/10 oz fractional gold coins, or 5gr gold coins to maximize their eventual gains.
