FBAR and taxes

WH
By WH on Wed, Apr 3, 2013 - 9:04pm

I'm looking for what other PM holders are doing regarding FBAR reporting and legally hiding potential capital gains taxes on their metals. I have a goldmoney account. My CPA told me that I need to fill out an FBAR (Report of Foreign Bank and Financial Accounts) this year. I don't owe taxes because I haven't sold anything. The US government just wants to know I have an account now that it's reached a certain size. Does anyone in this group have experiences with this? Also does anyone use an IRA to avoid captial gains taxes on their PM? So these are two specific questions: FBAR and IRA. But I'm open to discussing in general what people are doing to avoid paying capital gains taxes.

Thank you.

3 Comments

KathyP's picture
KathyP
Status: Bronze Member (Offline)
Joined: Jun 19 2008
Posts: 87
FBAR

I've been dutifully filing the FBAR for two years now for my BullionVault holdings.  The penalties for not doing so are pretty fierce.  From my understanding, when you do sell some of your holdings, you'll have to report taxable proceeds on Form 8938.  I doubt that there's much hope of hiding potential capital gains. 

Your IRA accounts can make or lose as much value as your luck (and investing skills) determine.  You'll be taxed on your IRA withdrawls at your income tax rate when you start to withdraw.

Take this with a grain of salt.  I'm no accountant, but I'm as interested in this as you are, and this is what I've gleaned so far.  I hope others chime in.

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
... and form 8938.

 

In addition to FBAR reporting, you might also have to file form 8938 for your foreign accounts if you reach the threshold. Form 8938 has to be filed with your tax return by the way.

Comparison of Form 8938 and FBAR Requirements

Hope this help.

 

WH's picture
WH
Status: Member (Offline)
Joined: Jan 17 2011
Posts: 16
Thanks SailAway and

Thanks SailAway and KathyP.

There is a way, I believe, to set up an IRA that when funds are withdrawn there are no taxes. I believe this is the case because the money put in the IRA has already been taxed. When combined with a custonian that allows PM to be purchased with the IRA, then in theory the capital gains from the PM won't be taxed. As I learn more, I will post more.

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