See 10/1/2010 Update Below
Keith Fitz-Gerald from MoneyMorning.com wrote a negative article on gold yesterday called Warning: You May Not be Making as Much on Gold as You Think.
In this article Fitz-Gerald was trying to “warn” gold investors by trying to rain on their parade about all the taxes they would have to pay on their gains. This negativity may convince some not to invest in precious metals, so I made a comment to his post telling the readers of MoneyMorning that there are solutions available to avoid paying taxes on the gains one has made on gold.
So far my comment hasn’t been posted. EDIT: The comment has now been posted, #18.
Unbeknownst to most investors, gold is considered a collectible not a capital asset. In plain English, this means that despite the fact that many people believe they are investing in gold, the Internal Revenue Service (IRS) believes that they are collecting it.
Precious metals are a completely different story. Profits from these “investments” can be subject to a 28% maximum tax rate if held for more than 12 months. And if they are sold in less than a year, the profits count as ordinary income.
While it is true there are higher taxes on the gains in investments in gold than stocks or real estate, there are solutions for investors in precious metals. I posted to the MoneyMorning article where investors can find these solutions in his comment section but it has been about 24 hours and my comment is still “awaiting moderation.”
There was also a comment (#6) by a poster named Dave that I referenced as misleading. Dave’s comment was;
Isn’t one sure way to avoid these tax troubles is to take physical possession of the gold instead of buying the paper.
That’s what I did and I don’t regret that one bit.
Here is a screen shot of my reply to Keith Fitz-Gerald from MoneyMorning;
How Can One Sell Gold Without Paying the 28% Tax on Capital Gains?
I give details on how to do it in a special report I have prepared “How To Sell Gold and Silver Tax Free.” It is a stand alone report different from the “Buy Gold Safely” comment above.
Disclosure: Since the first writing of this article, I do now sell gold and silver. My company, “Buy Gold and Silver Safely,” can also help liquidate your portfolio of gold and silver at the lowest cost in the industry.
But to do it on a tax-free basis will take some work on your part, which my guide can help you with.
To obtain a copy of this free report; “How to Sell Gold and Silver Tax-Free,” click on the link below.
You can also call me at 888-604-6534.