what do you experts think of his interpretation ...
" ===IRS Rules from their Web Page ====
"Sales of precious metals. A sale of a precious metal (gold, silver, platinum, or palladium) in any form that may be used to satisfy a Commodity Futures Trading Commission (CFTC)-approved regulated futures contract (RFC) if the quantity, by weight or by number of items, is less than the minimum required to satisfy a CFTC-approved RFC. A sale of a precious metal in any form that cannot be used to satisfy a CFTC-approved RFC is not reportable.
For example, Form 1099-B is not required to be filed for the sale of a single gold coin in the form and quality deliverable in satisfaction of a CFTC-approved contract because all CFTC contracts for gold coins currently call for delivery of at least 25 coins.
Sales of precious metals for a single customer during a 24-hour period must be aggregated and treated as a single sale to determine if this exception applies. This exception does not apply if the broker knows or has reason to know that a customer, either alone or with a related person, is engaging in sales to avoid information reporting."
Obviously, The IRS defines precious metals as a capital asset
from
"Precious Metals and Stones, Stamps, and Coins
Gold, silver, gems, stamps, coins, etc., are capital assets except when they are held for sale by a dealer. Any gain or loss from their sale or exchange generally is a capital gain or loss. If you are a dealer, the amount received from the sale is ordinary business income. "
thus the interpretation is that #1 the sale of any gold or other precious metal which has been held for more than one year qualifies for capital gains tax rates of 15% maximum, and #2 that the sale of any gold or other precious metal in quantities less than a single commodity contract (i.e. 24 coins/ounces or less) is below the IRS reporting threshold for brokers and individuals.



Reply With Quote

Bookmarks