[mattduke]

As it should be.

link

[3aidlillahi]

Smart and dumb at the same time. Good that he had invested in gold. It's probable that he had 400+ oz of gold for a long time, likely when they were a third to quarter of their current "value". So smart that he made that strategic decision.

But Florida? Really? If he's a gold bug, he's not as insane as most of them are. Which makes him even crazier in my opinion. What about every gold bug's dream: a bunker in Montana? He coulda fitted it with 100 well-kept rifles, a million rounds for the rifles, farming equipment, food stocks, zombie repellent, etc. But a house in Sarasota, FL?

I do imagine the possibility that he's nearing retirement, in which case, this would make more sense. Go out in style.

[pedalling_faster]

what about long-term capital gains tax ?

i'm a little surprised the IRS isn't in there holding out a hand.

[cube]

$this->bbcode_second_pass_quote('pedalling_faster', 'w')hat about long-term capital gains tax ?

i'm a little surprised the IRS isn't in there holding out a hand.

[Cashmere]

Cube - your understanding is different than mine.

Can you cite a source?

[Micki]

$this->bbcode_second_pass_quote('', 'g')old is money
there is no sales tax or capital gains tax on gold

[The_Virginian]

He may be trying to establish Allodial title by buying in Gold vs. an note of debt.

[Heineken]

$this->bbcode_second_pass_quote('cube', '')$this->bbcode_second_pass_quote('pedalling_faster', 'w')hat about long-term capital gains tax ?

i'm a little surprised the IRS isn't in there holding out a hand.

[frankthetank]

I doubt the government will like this. I bet money we hear more about this. They probably already have a cot ready next to "Blade".

[mattduke]

The nice thing about Krugerrands is there is no number other than "1 ounce" stamped on it, indicating a correct understanding of the nature of money. To make things really fun, it would have been nice to pay with 444 eagles, each of which is clearly labeled "$50", in the same manner pieces of cotton are labeled "$50". That would make the amount tendered $22,200, which will result in a reasonable property tax assessment.

[Denny]

$this->bbcode_second_pass_quote('mattduke', 'T')o make things really fun, it would have been nice to pay with 444 eagles, each of which is clearly labeled "$50", in the same manner pieces of cotton are labeled "$50".

[mattduke]

Jefferson rolls in his grave.

[Micki]

$this->bbcode_second_pass_quote('', 'I') recall some saloon keeper in Nevada (where else) tried to pay his staff this way, to reduce their income tax payable. But, the IRS never bought into this. His argument this that he was using legal U.S. tender. The IRS countered that the services rendered were in essence sold at the prevailing market price of the coins involved.

[pedalling_faster]

i don't think a government as deeply in debt as the US government is going to let transactions like this become normal. they will find a way to stick their hand in.

[Kingcoal]

Gold is a commodity, an equity. Thus buying realestate, which is also an equity, with gold is like one business buying another with a stock trade. Since gold is not money, rather an equity which has a floating value, it is basically investment money put "at risk," just like a stock. Trading one equity for another does not incur a a capital gain until the equity is liquidated. That's why companies tend to do stock trades for acquisitions. The capital gain is not realized until the stock is sold for cash (liquidated.) Capital gain (or loss) will be realized when the seller cashes in his gold or when the buyer sells the house for cash.

[Twilight]

Repeat this exercise with several trailers of steel I-beams. How does anyone assess the capital gain on that while it remains unrealised? I think this serves to demonstrate the age-old hole barter puts through any system of taxation. Of course, in days gone by, the tax collector would take a physical cut.

[Tyler_JC]

$this->bbcode_second_pass_quote('Twilight', 'R')epeat this exercise with several trailers of steel I-beams. How does anyone assess the capital gain on that while it remains unrealised? I think this serves to demonstrate the age-old hole barter puts through any system of taxation. Of course, in days gone by, the tax collector would take a physical cut.

[Heineken]

If you sell more than $10,000 worth of gold in a given year and deposit the check, this catches the eye of the IRS. According to Mr. Bill, a capital gains tax would then be levied if a profit was made.

I am not certain how this works or what routes there might be around it. I've done a little research and found conflicting information. In some cases, if you own bullion, it depends on the type of bullion you own! Ridiculous.

Determining the cost basis on gold could be impossible in many cases. Let's say you have 20 ounces of scrap gold, from jewelry, coins you were given by granddad years ago, etc. What is the cost basis if you sell it?

Mr. Bill had strong issues with using gold to buy real estate directly. I can't remember what the problem with that was, according to him. And I don't know what the tax considerations would be for the buyer, if any.

This is a very messy area.