Proposed Fair Treatment for Precious Metals Investors Act

SCDHunter

Link

On the surface, this appears to be a good thing. What am I missing?

Wolf359

Why do you think our opinion matters? Those crooks in DC don't represent the people, only themselves.

mrearlygold

<< <i>Why do you think our opinion matters? Those crooks in DC don't represent the people, only themselves. >>




That statement is right on the money

roadrunner

Our elected officials represent those people who keep helping return them to office. Those are the biggest donors (corporations, banks, wealthy individuals, unions, lobbys and organizations with clout, etc.) as well as those individuals who want to get benefits for free while paying essentially no taxes. As long as that is the system, one cannot expect different results.

While I would certainly favor such a bill, I'd give almost zero chance of passage that would put gold and precious metals back on equal tax footing to stocks and bonds. You're not missing anything. Such a bill would be a step in the right direction for establishing sound money and encouraging people to save.

roadrunner

brokeer

Interesting comment from link:

I have a Constitutional right to hold gold and silver bullion as legal tender in the USA and all sworn representatives of the USA have the responsibility to protect that right, having sworn their allegiance to the Constitution of the USA. As such, any gain in value or purchase power of the bullion should NOT be taxed at all, since a Federal Reserve Note of any denomination is legal tender and is NOT taxed on its gain in value or purchase power. I do not hold gold and silver bullion for investment purposes, but as legal tender.

Good luck with that.

Norseman88

I propose a 0% tax rate on precious metal holdings.

goingbroke

How would they know you didnt just sell a car or something instead of PMs?

CaptHenway

This bill is backed by ICTA, who are our freinds and know what they are doing.
TD

mhammerman

ICTA

MoneyLA

goingbroke wrote: "How would they know you didnt just sell a car or something instead of PMs?"

if you make a profit on the sale of a car, that is also taxable and taxed at your regular rate-- it is not treated as capital gains unless you specifically bought the car for investment.

in most cases, when you sell a personal car, you sell it for less than the price you paid, and in that case there is no taxable income AND you cannot deduct the loss either.

if you sell your gold at a loss (or no profit) there is also NO taxable income and no tax to be paid.

when you sell gold at a profit, the tax rate is your regular tax rate and not the preferred cap gains tax rate which is what this legislation is trying to change.

brokeer

From article:

Under the current tax law, investments in precious metals are treated as Òcollectibles gainsÓ which are subject to a tax rate of 28%. By contrast, investments in stocks and mutual funds are currently subject to a tax rate of 15% if the assets are held for more than one year.

MoneyLA

28% is the top tax rate. but your effective tax rate might be lower based on your deductions. My effective tax rate was 22% the last time around.

MrOrganic

Senate Bill #1367, the "Fair Treatment for Precious Metals Investors Act," was introduced June 25, 2009, by Sen. Michael Crapo (R-ID) and co-sponsored by Senators John Ensign (R-NV) and Harry Reid (D-NV). SB.1367 seeks to amend the Internal Revenue Code of 1986 to treat gold, silver, platinum, and palladium investments in the same manner as stock and mutual fund investments for the purposes of the capital gains tax rates imposed. Under current tax law, gains from investments in precious metals are treated as "collectibles gains" which are subject to a tax rate of 28%. By contrast, investments in stocks and mutual funds are currently subject to a tax rate of 15% if the assets are held for more than one year. If the bill becomes law, all US gold, silver and platinum Eagles would be eligible for the lower tax rate, as well as other bullion coins or bars meeting the requirement for minimum fineness. The bill currently has three cosponsors and has been referred to committee, and the House companion bill is expected to be introduced the week of July 13, if not sooner


im calling an writing!

goingbroke

<< <i>goingbroke wrote: "How would they know you didnt just sell a car or something instead of PMs?"

if you make a profit on the sale of a car, that is also taxable and taxed at your regular rate-- it is not treated as capital gains unless you specifically bought the car for investment.

in most cases, when you sell a personal car, you sell it for less than the price you paid, and in that case there is no taxable income AND you cannot deduct the loss either.

if you sell your gold at a loss (or no profit) there is also NO taxable income and no tax to be paid.

when you sell gold at a profit, the tax rate is your regular tax rate and not the preferred cap gains tax rate which is what this legislation is trying to change. >>

That makes sence but how would they know how much you paid for the gold? it would be hard for them to find out I would think

CaptHenway

<< <i>

<< <i>goingbroke wrote: "How would they know you didnt just sell a car or something instead of PMs?"

if you make a profit on the sale of a car, that is also taxable and taxed at your regular rate-- it is not treated as capital gains unless you specifically bought the car for investment.

in most cases, when you sell a personal car, you sell it for less than the price you paid, and in that case there is no taxable income AND you cannot deduct the loss either.

if you sell your gold at a loss (or no profit) there is also NO taxable income and no tax to be paid.

when you sell gold at a profit, the tax rate is your regular tax rate and not the preferred cap gains tax rate which is what this legislation is trying to change. >>

That makes sence but how would they know how much you paid for the gold? it would be hard for them to find out I would think >>



Simple. They make you prove how much you paid for it. Otherwise they assume that you got it free, and tax the entire amount.
Keep records.