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Thread: Avoid Capital Gains Tax on Silver

  1. #1
    Join Date
    Mar 2012
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    Default Avoid Capital Gains Tax on Silver

    Hey guys,

    Anyone know how to avoid capital gains tax on silver?


    Thanks

  2. #2
    Join Date
    Oct 2011
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    You can gamble by buying form abroad but it's not worth it, just pay the 20%

  3. #3
    Join Date
    Mar 2012
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    Default

    Sell at a loss.

  4. #4
    Join Date
    May 2007
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    Atlanta
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    Default

    Quote Originally Posted by arsenal009 View Post
    Hey guys,

    Anyone know how to avoid capital gains tax on silver?


    Thanks


    Hummm, that's asking for trouble right out in the open. I'll tell you how you can make sure you "will" have to pay capital gains tax if that will help. Sell 1,000 ounces of Silver in bar form to APMEX or any other dealer that belongs to the same organization that they belong to and you "will" receive a 1099-b form in the mail next year.
    I'm a proud member of Eggshellman's Liar, Shill, and bully club and a new member of the Super Jew Defense League!!!

  5. #5
    Join Date
    Sep 2008
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    1,073

    Default

    Quote Originally Posted by SilverHeel View Post
    Sell at a loss.
    There have been some good replies, but I like this one. If you buy paper, you can only use your losses to offset winnings. Right? Thats how my tax guy does with my gambling losses. Anyone ever been asked for ID at your local coin store?

  6. #6
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    May 2007
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    Atlanta
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    Quote Originally Posted by wdwexe View Post
    There have been some good replies, but I like this one. If you buy paper, you can only use your losses to offset winnings. Right? Thats how my tax guy does with my gambling losses. Anyone ever been asked for ID at your local coin store?

    There have been ambiguous IRS rules in place for decades regarding the reporting of sales or purchases of Bullion. My LCS told me he would only sell me half of what I wanted and that I should buy the rest from another coin shop so as not to involve the IRS and what he believed to be a $10,000 rule. At the time I wanted $9,000 in Gold (30 ounces) and $9,000 in Silver (2,000 ounces). That was back in the 90's and he didn't know me. Over the years, with our dealings that $10,000 limit seemed to disappear. So I think any LCS asking for an ID has to do with the amount of PM you are purchasing and their understanding of the IRS reporting rules and how well they know you. Since the vast majority of purchases are under the $10,000 limit, they don't have to worry about any of the regulations in most sales. That's only buying, as the IRS would like to keep tabs on who has what. When it comes to selling, then the IRS gets a little more serious and actual tax forms get involved, but the rules are still ambiguous. It's up to the buyer of your precious metal to report the sale on a 1099-b form and it's up to you to report the capital gains from that sale.

    I can tell you from experience that APMEX for one "will" send the IRS a 1099-b even without your S.S., if you do not give it to them. They will also withhold 28% of any future sales to them for failing to provide them with that information, if your dumb enough to sell any more to them. It's not just APMEX, but they are the ones I had that problem with.

    Not that I was trying to avoid capital gains taxes, as I was doing what is called a like kind trade and is not taxable. I sent them 1,500 ounces in bars and they sent me 1,500 ASE's and I sent them the difference in cash. I should have never received a 1099-b form to begin with. Since I did, it was a pain in the a$$ to figure out what form and how to complete it. It was a multi use form primarily designed for real estate transactions and an IRS agent helped me fill in the blanks.

    So an on line dealer can and will send a 1099-b form from the sale of PM if it meets whatever their requirements are, rather you give them your S.S. number or not, if they have your name and address that they sent a check to.

    Cash and carry in both directions from your LCS may be a different story, but if they start writing a check, you may have a problem. We never know when the government will put a law on the books that will require the reporting of all sales of PM above a certain dollar value or quantity of ounces and make it retroactive for that year. A check made out in your name and deposited in your banking account is as good as giving the dealer your S.S. number, as far as the IRS is concerned. Not that the IRS would run around auditing every coin dealer in the US, but they might very well audit a large number of them to set an example. Using their checks, then could then reach out and touch a lot of seller who didn't show any capital gains on their income tax returns. When it comes to capital gains tax, there is no minimum that I'm aware of, so any reported sale that the IRS was informed of, could lead to an audit of your taxes. Paper trails can be a bitch, no matter rather we think they are significant or not. Remember the IRS doesn't play by the same set of legal rules, your guilty until proven innocent.
    I'm a proud member of Eggshellman's Liar, Shill, and bully club and a new member of the Super Jew Defense League!!!

  7. #7
    Join Date
    Sep 2008
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    1,073

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    They sure do make up the rules as they go Val. You are correct about the lcs relationship. Big difference in now, and the way I was treated back in 2003 and 4. My guys do not know me personally, but they trust me and know who I am. They are much nicer to me as well. I have only taken a check a few times, when they ran out of cash on up days. I have never sold more than 100 oz at a time.

  8. #8
    Join Date
    Dec 2011
    Posts
    113

    Default

    If its paper. Sell at a loss to avoid tax.

    If its physical then just sell it to me on Craigslist . I promise I won't say anything to anyone and I pay cash.

    Otherwise enjoy breaking uncle **** Dick off a piece of your hard work.

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