Gold (and silver) income taxes explained

derryb

Precious metal income tax tutorial

And for those planning to sell PMs and then leave the profit to heirs there's a great tax advantage to just leave them the PMs and then THEY can sell:

Cost basis for inherited PMs

Profit becomes the difference between sell price and stepped up basis (current market value). This approach offers a near zero tax liability if a sale occurs just after inheritance of the item(s).

rte592

The Don't ask Don't tell approach with COB.
What's this profit you speak of... no one has made such a thing on PM's.

Just ask Blitz

Heubschgold

Thanks Justin, stepped up basis is like inherited residential property.

derryb

@Heubschgold said:
Thanks Justin, stepped up basis is like inherited residential property.

yes, applies to all inherited assets and if sold soon by the heir(s) there's very little "profit income" tax liability. Never sell an asset just to give the money to your heirs. Let them inherit it and then sell it to avoid the tax you would have paid on the gain.

toadstrangler

@derryb said:

@Heubschgold said:
Thanks Justin, stepped up basis is like inherited residential property.

yes, applies to all inherited assets and if sold soon by the heir(s) there's very little "profit income" tax liability. Never sell an asset just to give the money to your heirs. Let them inherit it and then sell it to avoid the tax you would have paid on the gain.

Yep, If one inherits physical PM's their cost is whatever spot is at the time of acquisition. Thus, turn around and sell at that number. No tax!

derryb

@softparade said:

@derryb said:

@Heubschgold said:
Thanks Justin, stepped up basis is like inherited residential property.

yes, applies to all inherited assets and if sold soon by the heir(s) there's very little "profit income" tax liability. Never sell an asset just to give the money to your heirs. Let them inherit it and then sell it to avoid the tax you would have paid on the gain.

Yep, If one inherits physical PM's their cost is whatever spot is at the time of acquisition. Thus, turn around and sell at that number. No tax!

very few bullion pieces are bought or priced at spot. The correct way to determine stepped up basis is to determine what the item is acually valued at using current sell prices. An inheritance of 10 ASEs would not have a correct stepped up basis using current spot price. The correct stepped up basis is the current price for 10 ASEs.