Bill Seeks To Reduce Taxes On Precious Metals Coins

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Bill Seeks to Reduce Taxes on Precious Metals Coins
By CoinNews.net on Jul 6th, 2009 in Coin or Numismatic News, Proposed or Recent Coinage Legislation | No Comments

Coin Legislation on Capital BuildingKnocking on the legislative door for the eighth consecutive year is a new bill seeking to treat coins or bars composed of silver, gold, platinum and palladium in the "same manner as equities and mutual funds for purposes of the maximum capital gains rate for individuals."

Gains from the sale of collectibles held for more than one year are taxed at a rate of 28 percent. (Collectibles include coins, stamps, coins, antiques, art, and gems.) The level is significantly higher than the maximum 15 percent capital gains rate for other long-term investments, like stock and bond holdings.

The bill, named the Fair Treatment for Precious Metals Investors Act, S. 1367, was introduced by Sen. Michael Crapo [R-ID], who also brought forward the measure in the prior 110th Congress, and Senators John Ensign [R-NV], Harry Harry [D-NV], and James Risch [R-ID].



"We have a strong precious metals industry in Idaho and treating these precious metals products as the kind of investment products that they are will spur and strengthen the markets for these products," Crapo said following his first attempt.



Given the track record of identically intended legislation that spans back to June 2001, the average collector is not likely to hold his or her breadth on the passage of S. 1367. Should the near unthinkable happen, however, the effective date would apply to the taxable years beginning after December 31, 2009.

For coin legislation to become law, it must pass both in the House and Senate, and get signed by the President.