100% Tax on Gold Sale Profits

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JAG's picture
JAG
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100% Tax on Gold Sale Profits

 Has anyone considered the possibility that the Government could heavily tax the profit on gold sales in the future, instead of confiscating personal bullion holdings. I searched the forums, but I didn't find anything relevant to this possibility. This very real possibility makes me doubt the effectiveness of holding physical bullion as insurance against a total collapse of the US financial system. Anybody out there in the forum "brain trust" have an opinion on this matter?

Thanks for your input.

mpelchat's picture
mpelchat
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Posts: 214
Re: 100% Tax on Gold Sale Profits

How about this senario?

http://www.fgmr.com/confiscation.htm

Jarhett's picture
Jarhett
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Re: 100% Tax on Gold Sale Profits

1.  How would they know how much you bought it for?

2.  Why would you convert the gold into dollars, when you can use the gold as money?

 

LogansRun's picture
LogansRun
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Joined: Mar 18 2009
Posts: 1443
Re: 100% Tax on Gold Sale Profits

Of course it's been thought about and discussed on other forums many times over.  It's a possibility but how are they going to track it?  Really, it's not a worry.  Here in VA there's a 5% sales tax for sales of PM's but no one pays it unless the broker MAKES them.  Most brokers don't even know about the tax so.....it's a non issue.

Not saying this is you but I've found that on other forums people that bring the Tax issue up or confiscation usually end up being people that want to dissuade people from buying PM's.  Once we found that it was a guy from an undisclosed gov't agency doing exactly as stated.  I know the owner of the site and he checked the IP. 

JAG's picture
JAG
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Re: 100% Tax on Gold Sale Profits
Jarhett wrote:

1.  How would they know how much you bought it for?

2.  Why would you convert the gold into dollars, when you can use the gold as money?

 

1. You would report your cost basis, otherwise you would have to pay taxes on the entire value of your transaction with the broker. The broker is required by law to report all of his (and therefore your) transactions. This is similar to selling a stock, if you don't have a cost basis for the stock your selling, your required to pay taxes on the entire amount of the proceeds.

2. You might be forced to convert to dollars to buy items of a lesser value than the value of your bullion, or maybe the seller will not accept bullion as payment.

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
Re: 100% Tax on Gold Sale Profits
LogansRun wrote:

Not saying this is you but I've found that on other forums people that bring the Tax issue up or confiscation usually end up being people that want to dissuade people from buying PM's.

Trust me, thats not the issue with me. I'm just trying to examine all the possibilities of an uncertain future. Thanks for your input, I hope it won't be a problem. Most likely, if the financial system collapses, there won't be a government to tax us anyways.

JAG's picture
JAG
Status: Diamond Member (Offline)
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Posts: 2492
Re: 100% Tax on Gold Sale Profits

 Thanks mpelchat for the link. Although I'm a customer of goldmoney.com, I have not read that article by Turk. 

goldrunner1's picture
goldrunner1
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Posts: 27
Re: 100% Tax on Gold Sale Profits

My best guess is that if the government started taxing the profits of sellig gold at 100% it would firstly a huge black market for gold. Secondly gold would be smuggled out of the country where it could be sold without a tax. This would be very counter productive for the country that imposes the tax.

 

Goldrunner1

Morpheus's picture
Morpheus
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Posts: 1200
Re: 100% Tax on Gold Sale Profits
JAG wrote:
LogansRun wrote:

Not saying this is you but I've found that on other forums people that bring the Tax issue up or confiscation usually end up being people that want to dissuade people from buying PM's.

Trust me, thats not the issue with me. I'm just trying to examine all the possibilities of an uncertain future. Thanks for your input, I hope it won't be a problem. Most likely, if the financial system collapses, there won't be a government to tax us anyways.

I'm not sure this is something to be concerned about. 2009 on is a far different culture than 1930. A minority of citizens HAVE learned an awful lot about government via history. So, I think a lot of folks would would see either of these three events as the canary in the coal mine:

1. The government tries to confiscate all or part of people's remaining investment/retirement accounts.

2. The government comes for the guns.

3. The government comes for the gold.

Now, how do I put this politely. Well, I think with any of these events A LOT of people will awaken, realize that the social contract really has been shattered (Rip van Winkles all over the place, LOL) and the "Aim Small, Miss Small" contract becomes effective. (I'm neither advocating this, nor stating intentions. Au contraire. What I am doing is predicting an outcome based on a hypothetical. What I think would happen).

It won't happen. The gov't knows this. They're brazen, but not stupid.

I'm not losing sleep over it. I'm actually more worried about the COLLAPSE of the government. Now that would be bad.

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1443
Re: 100% Tax on Gold Sale Profits
JAG wrote:
LogansRun wrote:

Not saying this is you but I've found that on other forums people that bring the Tax issue up or confiscation usually end up being people that want to dissuade people from buying PM's.

Trust me, thats not the issue with me. I'm just trying to examine all the possibilities of an uncertain future. Thanks for your input, I hope it won't be a problem. Most likely, if the financial system collapses, there won't be a government to tax us anyways.

JAG,

I'm glad to hear that.  It's something that gets very tiring when you know that PM's could be the only thing that keeps a family from starving or in their homes if the worst occurs. 

Pete,

Why would it be so bad if the gov't collapses?  IMO, that would be a thing of beauty at this point.  I know it would create havoc but IMO the gov't that we have now is worse than no gov't at all.  I'm not an anarchist but I do believe that the gov't of today is no longer working for the people but for a few powerful Wall Street toughs that have only their interests in mind.  Starting over would be a great opportunity!

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