<< <i>Do American Gold and Silver Eagles still receive special US tax status? >>
Not sure what you mean by that statement. If you could extrapolate?
As far as the 28% tax on profit, if one incorporates, sets up an actual registered business or what ever works for you. Your bullion can be inventory and then your profit is simply income less overhead. There are tax breaks that go along with this as well.
For the smaller investor, the costs of setting this up may be prohibitive. For some of us, it's money well spent. It's paid for itself for me many times over and my tax atty handles all the paperwork. I have no physical store, as such, but I do buy and sell and there is still some overhead that can be written off by doing this.
Talk to your tax person, just make sure they are well versed in precious metals.
"Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose." John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
I like the dollar cost averaging approach. That way you don't have to worry about buying on the "dips" (which is impossible, anyway). If you have a long term horizon (and 54 is not old), I would put this amount in your tax deferred IRA (up to the limit) and use the balance to dabble in gold.
Always took candy from strangers Didn't wanna get me no trade Never want to be like papa Working for the boss every night and day --"Happy", by the Rolling Stones (1972)
It would be nice to have a little pull back to $780 or $820. It may still happen, but you'll be sorry that you didn't get on board when the price of gold goes north of $1200.
"Gold is money, and nothing else" (JP Morgan, 1912)
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
<< <i>Not saying it's a bubble, but that gold chart looks like the Nasdaq in the 1999-2001 timeframe to me....
>>
Even if your comparison is accurate (and in my opinion it isn't), it means another 50% to 100% upside before the bubble bursts. Gold spent a full year consolidating in the $700 range. That kind of sideways movement can fuel a nice bubble, if indeed it is a bubble (again, I don't think it is).
Comments
Do American Gold and Silver Eagles still receive special US tax status?
<< <i>Do American Gold and Silver Eagles still receive special US tax status? >>
Not sure what you mean by that statement. If you could extrapolate?
As far as the 28% tax on profit, if one incorporates, sets up an actual registered business or what ever works for you. Your bullion can be inventory and then your profit is simply income less overhead. There are tax breaks that go along with this as well.
For the smaller investor, the costs of setting this up may be prohibitive. For some of us, it's money well spent. It's paid for itself for me many times over and my tax atty handles all the paperwork. I have no physical store, as such, but I do buy and sell and there is still some overhead that can be written off by doing this.
Talk to your tax person, just make sure they are well versed in precious metals.
John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
They say the best time to plant a tree is twenty years ago. The second best time is today.
It would be nice to have a little pull back to $780 or $820. It may still happen, but you'll be sorry that you didn't get on board when the price of gold goes north of $1200.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
<< <i>Oh, I forgot to mention, BUY PLATINUM TOO!!! >>
If the past ratio between Platinum vs Gold holds, when gold reaches $1200/oz platinum will be $2400/oz
<< <i>Not saying it's a bubble, but that gold chart looks like the Nasdaq in the 1999-2001 timeframe to me....
Even if your comparison is accurate (and in my opinion it isn't), it means another 50% to 100% upside before the bubble bursts. Gold spent a full year consolidating in the $700 range. That kind of sideways movement can fuel a nice bubble, if indeed it is a bubble (again, I don't think it is).