Gold Taxation Issues

I have a feeling that a number of Survival And Prosperity readers either own gold or might be thinking about acquiring the precious metal in the future.

Tonight, I happened to come across an article on MarketWatch.com entitled “The tax implications of owning gold.” Bill Bischoff wrote yesterday:

In this environment, the idea of investing some taxable money in gold and other precious metal assets could be appealing. But read this to make sure you understand the tax angles…

It’s an insightful read. For example, I thought the sale of physical gold (both bullion and collectible) was subject to the maximum federal income tax rate of 28 percent- at a minimum. However, Bischoff explained:

Here’s how the 28% maximum rate deal works. If you are in the 28%, 33%, 35%, or 39.6% federal income tax bracket, net long-term gains from collectibles, including precious metal assets, are taxed at 28%. However, higher-income folks may also owe the dreaded 3.8% net investment income tax. If so, the maximum effective federal rate on long-term gains from precious metals can be 43.4% (39.6% + 3.8%).

If you are in the 10%, 15%, or 25% bracket, your net long-term gains from collectibles, including precious metal assets, are taxed at your regular rate of 10%, 15%, or 25%. In these brackets, you don’t have to worry about owing the 3.8% net investment income tax…

Interesting. You can read the entire piece over on the MarketWatch website here.

Just remember to consult a competent tax professional regarding such matters rather than relying on something you read on the Internet.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Share

Tags: , , , , , ,

Thursday, July 16th, 2015 Commodities, Income, Investing, Precious Metals, Taxes

No comments yet.

Leave a comment

Survival And Prosperity
Est. 2010, Chicagoland, USA
Christopher E. Hill, Editor

Successor to Boom2Bust.com
"The Most Hated Blog On Wall Street"
(Memorial Day Weekend 2007-2010)

Happy New Year

PLEASE RATE this blog HERE,
and PLEASE VOTE for the blog below:



Thank you very, very much!
Advertising Disclosure here.
ANY CHARACTER HERE
Emergency Foods Local vendor (Forest Park, IL). Review coming soon.
ANY CHARACTER HERE
Legacy Food Storage Review coming soon
ANY CHARACTER HERE
MyPatriotSupply.com reviewed HERE
ANY CHARACTER HERE
Buy Gold And Silver Coins BGASC reviewed HERE
ANY CHARACTER HERE
BulletSafe reviewed HERE
ANY CHARACTER HERE
BullionVault BullionVault.com reviewed HERE
ANY CHARACTER HERE
This project dedicated to St. Jude
Patron Saint of Desperate Situations

Categories

 

Archives