No Drama, I read where you made that statement before about about gold and silver not being reported to the government. Maybe you are from the UK where this might be true, but not in the USA. Last week I just unloaded 10 Kruggerands when gold rose above $1,200.00. I was required to provide ID and SS# to complete the transaction. You are expected to report profit to the IRS and pay tax on a capital gains basis if held for over a year.
The only way to feasibly beat income taxes on physical gold was recently reported by another RIU member who said that he traded his product (herb for gold)) thru a broker friend. In other words, off the books. Most brokers will not do that. I assume that that broker would also buy it back off him. If not, he's going to have to produce ss# when he sells it and there will be a physical record of that sale. Not trying to start a flame war, just telling you of my personal experience.
Thats only because your sale of Krugerrand was a cash sale of more than $10,000. Its the cash that got reported, not the gold. Care to see the laws?
http://controller.nd.edu/policies-and-procedures/cash-transactions.shtml
Next time have them pay you with a private check, no reporting needs to be done then. Or you can get half in cash and half in Check, again no reporting needs to be done.
Below are reportable items which are listed by the IRS. You will also see the threshold number of ounces that triggers the need to file a report to the IRS. Take note that the reporting requirement only happens when you sell, not when you buy.
Reportable Transactions
- Gold bars: any combination 32.15 ounces or more
- South African Krugerrands: 25 ounces or more
- Canadian Maple Leafs: 25 ounces or more
- Mexican Onzas: 25 ounces or more
- Silver bars: 1,000 ounces or more
- Pre-1965 US 90-percent silver coins: 1000 dollar face value or more
- Platinum bars: 25 ounces or more
Certain trades are considered as a commodity trade and are reportable. Buy your gold and silver from different dealers and in small amounts each time. NOTHING is reported if you do that.
The government cannot tax you anything if it has no idea you have it.
When you sell it , sell a bit at a time, cash sales will be reported if in excess of 10K or if you try to structure it so that 10k is sold in 1 week. Use several dealers, jewelry stores/pawn shops will all give cash for gold. the reported gold/silver will only be reported if you go above the listed threshold. You can sell any amount of gold and silver eagles and get away with it because those eagles are considered legal tender for face value and they by law cannot tax money.
NEVER tell the IRS how much gold you sold, you will be taxed at the Collectibles rate which is more than anything else at 38%. Sell 8k or less at a time and never sell to the same dealer 2 weeks in a row.
Of course you can just hold onto it also, more and more places are accepting gold and silver in lieu of dollar payment.
Some states do put a tax on bullion sales, but there is no federal tax.
http://preciousmetals.wikia.com/wiki/Bullion_Sales_Tax
Be aware that even most bullion dealers DO NOT know the procedures and laws. Mainly becasue it took the IRS 7 years to come up with the rules after the laws of reporting were already on the book, that confused a lot of people.