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Author Topic: What does the Govt. expect from a gold discovery?  (Read 3231 times)

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Offline Horsefeathers

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What does the Govt. expect from a gold discovery?
« on: June 19, 2009, 09:17:53 AM »
I was thinking of buying some 1oz. Gold Eagle coins. But the dealer gets a handling fee and the State wants 9.25% sales tax for the sale. What if I discover gold do I owe Income tax if I sell it? how else does the Govt. meddle in my discovery?    In 1933 Pres.Roosevelt declared public possesion of Gold illegal.Our current Aministration is leaning towards un Constitutional meathods. Horsefeathers.
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Offline charles p

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Re: What does the Govt. expect from a gold discovery?
« Reply #1 on: June 19, 2009, 02:45:27 PM »
Gold mining should not be taxed any differently than any other business pursuit.  You have verifiable expenses, and you have sales from your gold.  The difference is your income and it is the portion that is taxable.  I assume this is correct.  I am not a miner.  You might be entitled to a depletion allowance.
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Offline Empty Quiver

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Re: What does the Govt. expect from a gold discovery?
« Reply #2 on: June 19, 2009, 04:00:03 PM »
I would think you will get about the same treatment as a farmer. No real tax liabilities till you go to sell some of your assets.
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Offline BIGDAVE54

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Re: What does the Govt. expect from a gold discovery?
« Reply #3 on: August 28, 2009, 12:38:40 PM »
 I believe Charles is correct. It is not any different than any other thing...say cashing aluminum cans in. You do your debits and credits like anything else. My wife does the accounting in our family so I may miss the terms . There was a time when the ownership of raw gold was illegal.  I believe we have to look at the spirit of the law there. If you were holding millions of dollars worth of raw gold the government would probably want to know about it.I doubt if uncle Sam or the IRS looses much sleep over a few nuggets  a part time panner might have. The ownership of gold coins is entirely legal as far as I know. There is a special section in the tax law I once heard about. All sale of foreign gold coins have to be recorded and reported by dealers...There was something about the sale or reporting of U.S. gold coins by gentlemans agreement. This was from a time the government was trying to stimulate the sale of coins.
      The best gold prospector I ever saw was a little granny woman back in the 80s. Kmart had a little coin set they were selling in the jewelery dept. at their stores once. The paper ran a 50% off on all of the things in their jewelery dept. This lil granny woman drove around to every Kmart in the area buying up all of the coin sets. She held them for a few years and sold them off at the gunshows.Each set had a lil quarter or half oz. gold coin.
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Offline Graybeard

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Re: What does the Govt. expect from a gold discovery?
« Reply #4 on: August 28, 2009, 12:48:32 PM »
With the economy situation what it is today and heading where it looks to be heading if you don't need the income to get by today I'd think a wise prospector would be hiding that gold for a rainy day and I don't mean the kind with water coming from the sky.
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Offline rio grande

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Re: What does the Govt. expect from a gold discovery?
« Reply #5 on: August 28, 2009, 01:43:33 PM »
Why does the gov't need to know if you find gold?
They didn't even know it was there....that's for sure, because they'd have taken it first :)

As far as buying gold coins, can't you find an individual to buy from?  No tax, no hassle, you help out somebody.
I see gold at the gun shows all the time.
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Offline torpedoman

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Re: What does the Govt. expect from a gold discovery?
« Reply #6 on: August 28, 2009, 03:22:37 PM »
were are you at that someone is trying to charge you sales tax on gold??Gold is money it even has a dollar amount stamped on most coins this is like asking for change for a twenty and being taxed on the ones.YOU ARE BEING RIPPED OFF. Check with your state and locality and when you find out there is no tax turn the guy in for collecting it.
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Offline Casull

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Re: What does the Govt. expect from a gold discovery?
« Reply #7 on: August 28, 2009, 04:33:41 PM »
Quote
were are you at that someone is trying to charge you sales tax on gold??Gold is money it even has a dollar amount stamped on most coins

You got your info wrong there.  Gold is not money.  It is no longer legal tender.  Roosevelt took care of that.  As for current gold coins, they are bullion, not legal tender.

Quote
Why does the gov't need to know if you find gold?

For the same reason they need to know if you draw a paycheck or run a business.  So they can take their bite.
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Offline bagdadjoe

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Re: What does the Govt. expect from a gold discovery?
« Reply #8 on: January 15, 2011, 07:05:28 AM »
Ever notice how every time you put your hand in your pocket there's already a hand in there?  Uncle Sam's, of course.  I never could figure out why when I do all the work, Unk gets something for nothing. Kinda the way a lot of people want it these days....  It's the ol' "protection" racket...put something in my little brown bag and maybe nothing bad will happen to you.  Sorry if I drivelled in the wrong forum.
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Offline jdt48653

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Re: What does the Govt. expect from a gold discovery?
« Reply #9 on: January 16, 2011, 08:34:10 AM »


i sell my gold to other prospectors,cash only.,i dug it, its mine!!
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Offline charles p

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Re: What does the Govt. expect from a gold discovery?
« Reply #10 on: January 17, 2011, 10:32:48 AM »
I read that the profits from the sale of coins is different form ordinary income.  Taxed at 28% because it is considered a collectible.    http://www.groco.com/readingroom/tax_saleofcollectible.aspx

Don't think this would apply to gold mining.
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Offline thxmrgarand

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Re: What does the Govt. expect from a gold discovery?
« Reply #11 on: January 18, 2011, 06:29:04 AM »
I am not a tax accountant.  However, there seems to be a mix of state and local tax provisions here, and capital gains, personal income and business income tax law intertwined within in the responses.  By the way, there is a story in the Wall Street Journal today that suggests that the federal income tax alone may be too complex to be constitutional.

All I will add to the mix is that the Obama health care bill enacted and signed into law last year has a provision that brought lots of complaints at the time; dealers in coins and precious metals will have to report transactions, SSN of the counter party, etc. to the IRS.
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Offline 1911crazy

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Re: What does the Govt. expect from a gold discovery?
« Reply #12 on: September 30, 2012, 08:22:28 AM »
Its another modern day gold rush to AK.   More money, more taxes, more people in AK.
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