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View Full Version : sae vs maples face value + taxes



joshrain
7th June 2008, 20:03
hi folks,

should i buy sae or maple leaf.
the maple leaf seems a good choice as it is a $5 face value vs $1 face value for silver.

the reason i am looking at face value is if silver were to go to zero, i would atleast get face value.


i am not sure if there are any tax implication on this.
does anyone know if depreicating frn's and appreciation of sae would result in taxes? but then how does one prove the cost basis?

thanks!

goldminer
7th June 2008, 21:02
1. Preference for Maple Leafs or Eagles should be answered by what country you live in...a coin being legal tender might well be important sometime in the future.

2. I wouldn't be concerned that the value of silver will ever go to zero...nobody in history that held physical gold and/or silver has ever gone hungry.

3. Re taxes...any profit earned at trade-out requires reporting as income. Claims relevant to the precise mount of profit reported can be supported by obtaining and keeping receipts/records & dates of purchases.

joshrain
7th June 2008, 21:07
1. Preference for Maple Leafs or Eagles should be answered by what country you live in...a coin being legal tender might well be important sometime in the future.

2. I wouldn't be concerned that the value of silver will ever go to zero...nobody in history that held physical gold and/or silver has ever gone hungry.

3. Re taxes...any profit earned at trade-out requires reporting as income. Claims relevant to the precise mount of profit reported can be supported by obtaining and keeping receipts/records & dates of purchases.

if coins are legal tender why should one have to pay taxes?

paker
7th June 2008, 21:54
It depends on the laws were you buy them. Most states in the US don't add tax to "legal tender".

SilverHawk
8th June 2008, 04:56
Silver will never go to zero. Not anywhere close. And if you're looking at using the coin for face value, the US isn't going to take a canadian coin at the store and visa versa. So if you plan on using them for face value someday, you probably shouldn't be wasting your money buying them now....Buy high, sell low????

fansubs_ca
8th June 2008, 05:29
I don't think joshrain is thinking of it as a likely scenereo, just covering
both bases because the future can never be known 100% for sure.
So (if you live in or near Canada) the Maples are a very good way of
being certain you'll have some usable saving regardless of whether
we have hyperinflation _or_ a deflationary depression.

Also if you are in the deep south you might lean towards the Eagles
rather than Maples since the "legal tender" value is only relavent in the
applicable country and if you aren't near the border it could be difficult
to get full value in a deflationary depression without easy access to the
country where the legal tender value applies.

Though the premium on the Maples is about half what that face value
is so you are paying quite a bit for a "put option" that you aren't likely
to use. The other problem is recognition, very few retail clerks would
know what a Silver Maple is if they saw it.

In the hyperinflationary scenereo Maples and Eagles should be of
interchangable value with each other or any other easiily recognized
1 ounce rounds.

Overall since the spread is much smaller I still perfer junk silver as the
best holdings in terms of value for cost to acquire. Also if you are in
the U.S. 90% junk silver has about 38% _more_ face value per ounce
of silver than Eagles do. ^_-

goldminer
9th June 2008, 17:24
"...if coins are legal tender why should one have to pay taxes?"

Because the coins are being sold and purchased as a commodity...not being exchanged as currency resulting from the transaction.

The left-wing powers-to-be in government are gonna get your money anyway they can. Bet on it!