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Gold sale tax expert help sought.
topstuf
Posts: 14,803 ✭✭✭✭✭
I....think.....this is a no brainer/no reporting sorta thing.
BUT...
Just to run it by any of you who keep up on the reporting requirements..
If I sell some gold and have the check made out to GRANDCHILDREN, would it be treated the same as a normal "gifting" exclusion for tax purposes?
MY name would not be attached to the transaction and the amount would be no more than 10 oz per kid.
BUT...
Just to run it by any of you who keep up on the reporting requirements..
If I sell some gold and have the check made out to GRANDCHILDREN, would it be treated the same as a normal "gifting" exclusion for tax purposes?
MY name would not be attached to the transaction and the amount would be no more than 10 oz per kid.
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The gifting exclusion is a question for the experts tho.
I knew it would happen.
My trust provides the heirs with their CHOICE of the money or the coins.
But I want to give them something while I'm alive.
Coins rec'd in a will or trust would be NO taxable gain as the cost would be in the "stepup" tax thingy.
good luck, Grandpa!
FINALLY! SAFE "tax advice"
I....think.....this is a no brainer/no reporting sorta thing.
BUT...
Just to run it by any of you who keep up on the reporting requirements..
If I sell some gold and have the check made out to GRANDCHILDREN, would it be treated the same as a normal "gifting" exclusion for tax purposes?
MY name would not be attached to the transaction and the amount would be no more than 10 oz per kid.
In that case the buyer of the gold would be gifting the money. Best thing is for you to be the giftee. IIRC you don't have to claim anything when you file a return, but the kids likely will need a return filed on their behalf showing the gift/s. The IRS doesn't need to know that you sold gold to get the $$$.
MY COINS FOR SALE AT https://www.pcgs.com/setregistry/collectors-showcase/other/bajjerfans-coins-sale/3876
why not just sell in small lots, get cash, then disburse directly to their pockets? No fuss, no muss?
If you want to feel better about skirting tax laws, donate a portion of the proceeds to a fund to buy guns for the drug cartels. You'd still be supporting a taxpayer-funded program that way
I sure wouldn't advocate that either.
Nope. In fact, I'm amazed that with being a dealer for 30+ years, I never even THOUGHT of such a thing.
Dang.
If I gave them the coins directly (which would be my choice) they'd hafta store em and I don't think today's kids have the smarts to deal with anything BUT a check.
I can see 4 (probly 2) paths to the WE BUY GOLD place.
Reporting income on personal income tax forms has nothing to do with exceeding 25 oz or what the source of the income is. All income above the minimum amount (see the 1040 instructions) is required to be reported as income. Whoever receives this income has to report it and after completing the IRS capital gains/loss form, ends up paying taxes on the profit. Coins (and bullion) get taxed at the higher "collectible" rate.
You can gift, I believe up to 15,500 (edited to correct to $14K) to an individual per year without the individual having to report the income. However proceeds from the sale have to be reported as income by whoever makes the sale and receives the proceeds. If you are married and the coins are "jointly" owned, you AND your wife can each make a tax free gift of the coins up to the limit to the same individual. Same rule applies if you are gifting cash.
Two choices:
1. you claim the proceeds as a capital gain/loss based on what you have in the coins, plus the cost of disposing of them, and then gift cash up to the max without the receiver of the cash gift having to claim the income.
2. Gift the coins (their current value) to an individual(s) with their a new, starting basis (cost) being the value of the coins at the time of the gift and then the receiver of the coins makes the sale and claims the gain(profit) on the sale as a capital gain or loss. Do not exceed the maximum gift allowance or the receiver will have to treat all value above the maximum as income (and pay taxes on it) plus pay additional taxes on any profit when sold.
A third option, if you purchased the coins at a substantially lower value than their current value is to leave the coins (be specific) in your will. The advantage here is that the recipient of property from your will gets to start a new basis (cost) on the day of your death and that basis is determined by the current market value. This route helps to greatly reduce the eventual taxable profit when the heirs sell the coins.
In both cases the income is treated and reported as an investment just like stocks are. Your decision should be based on who will pay the lowest percentage in taxes on the gain. Remember, only the gain is taxable unless their is a gift of more than the limit. If so, the amount (or value of property gifted) over the gift limit has to be reported as income by the receiver of the gift.
Whatever you decide, good records are very important.
DISCLAIMER: All tax advice should be confirmed by consulting a licensed professional or a thorough review of IRS tax law (easily available at their website, no so easily understood).
Give Me Liberty or Give Me Debt
They want the cash and will never appreciate the coins or what went into them.
Buy them plots of realistate with $$ at least land should bring current market value.
If so, just sell enough of the silver to offset the gain in Krugs to arrive at the amount of cash that you want to give away.
Then, give it away up to the $15,500 that derryb mentions.
I knew it would happen.
Reporting income on personal income tax forms has nothing to do with exceeding 25 oz or what the source of the income is. All income above the minimum amount (see the 1040 instructions) is required to be reported as income. Someone receives and reports this income and after completing the Capital gains/loss form, ends up paying taxes on the profit. Coins (and bullion) get taxed at the higher "collectible" rate.
You can gift, I believe up to 15,500 to an individual per year without the individual having to report the income.
However proceeds from the sale have to be reported as income by whoever receives the proceeds.
Two choices:
1. you claim the proceeds as a capital gain/loss based on what you have in the coins plus the cost of disposing of them and then gift cash up to the max without the receiver of the gift having to claim the income.
2. Gift the coins (their current value) to an individual(s) with their their new, starting basis (cost) being the value of the coins at the time of the gift and then the receiver of the coins claiming the gain(profit) on the subsequent sale as a capital gain or loss. Do not exceed the maximum gift allowance or the receiver will have to treat all value above the maximum as income (and pay taxes on it) plus pay additional taxes on any profit when sold.
If you are married and the coins are "jointly" owned, you AND your wife can each make a tax free gift up to the limit to the same individual.
In both cases the income is treated and reported as an investment just like stocks are. Your decision should be based on who will pay the lowest percentage in taxes on the gain. Remember, only the gain is taxable.
What he's getting at is that if he sold 25 ounces or more to an AP or other business, they would likely issue him a 1099-B which means that he'd have to report the sale and pay any capital gains tax.
MY COINS FOR SALE AT https://www.pcgs.com/setregistry/collectors-showcase/other/bajjerfans-coins-sale/3876
The issuance of a 1099-B by the party dispensing funds (the buyer) reports large transactions to the IRS and reminds the taxpayer not to forget to claim the income. The 1099-B does not serve as a "cut off" for which income has to be reported on personal tax forms.
This is an additional reporting requirement and it is placed on the buyer to report a large transaction that may not get reported (as required) by the receiver of the proceeds (the seller). It changes nothing in the requirements of a seller reporting his income no matter how great or small that income. It only guarantees that the IRS is informed of a large transaction by at least one of the parties and serves as a "motivator" to ensure income gets reported by the receiver.
This law was created to help the IRS catch those not reporting large amounts of income. Look for the 1099-B reporting limits to get lower over time. Again, 1099-B reporting limits are irrelevant to the receiver of income - he is required to report all amounts. The IRS is basically requiring buyers to "drop a dime" via the 1099-B on receivers of proceeds involving large transactions.
Give Me Liberty or Give Me Debt
https://www.irs.gov/Busines......ns-on-Gift-Taxes#1
My Ebay Store
I understand and am now ready to start receiving "gifting"!
A couple of elections back there was a very wealthy candidate who the media crucified because he and his wife both gave the max gift to all five of their children each year. It was a smart move on his part as it allowed him to transfer hundreds of thousand of dollars in wealth over the years to his kids and avoid eventual estate taxes on that amount.
If your parents are wealthy they should have been doing this for you all along. If they haven't tell them to get with the program.
Give Me Liberty or Give Me Debt
I lived with that crap for decades and just forgot to put it in this case.
My will DOES leave the physical metal to the heirs.
THEIR choice. They can take it and sell it next day with no gain due to step-up basis.
MY personal "plan" was to sell AS NEEDED....small amounts ...IF neeced in MY dotage.
This situation here is just a recent brainfart of mine.
It will be FAR simpler to let the trust distribute the coins and bullion and let THEM fart with the taxes.
I....could.... do it with plain ole cash.
I just thought I could BALANCE my gold/cash ratio with a gift from the gold.
Glad I posted. Gonna let it go.
Kids nowadays (normally) ain't got NO concept of "REAL MONEY
Sad but true.
Let em eat cake til I kick.
You'll make it up in benefits if Bernie or Hillary get elected.
I understand and am now ready to start receiving "gifting"!
A couple of elections back there was a very wealthy candidate who the media crucified because he and his wife both gave the max gift to all five of their children each year. It was a smart move on his part as it allowed him to transfer hundreds of thousand of dollars in wealth over the years to his kids and avoid eventual estate taxes on that amount.
If your parents are wealthy they should have been doing this for you all along. If they haven't tell them to get with the program.
Sound advice.
Back 15 years ago when the estate tax was 55% as I recall, a relative left a sizable estate. And despite using some last minute gifts to pass a few hundred thousand tax free, approx half of the multi-million dollar estate went to the govt, and not the heirs. That could have been planned out a lot better. You spend a lifetime saving so hard, only to give 50% of it back in a heart beat.