Adam, I am > wondering how do I treat it for tax purposes (in the US). > I am sure the IRS will want its cut, but how do I determine > the fiat > equivalent? My company web site has a form to accept e-gold by > weight, > not by dollars. And, of course, its value fluctuates.
By U.S. law, you must report the market value of the gold received at the time it was received on your tax return. If you know the date it was received, then all you have to do is check the price of gold at that date. > I > presume the > IRS will want its cut in the year in which I receive the gold > rather > than in the year when I exchange it for cash, which may or may > not be > the same year. That's correct. > Secondly, if I pay independent business contractors in e-gold > and have > to give them an IRS form at the end of the year, again, how do > I determine > how much I paid them in paper money when I actually paid them > in gold? Again, it's based on the market value of gold at the time that payment was made. You should keep good records. If you paid someone $700 in gold in 2002, then you must file form 1099-MISC by January 31, 2003. I believe gold/silver sales are excluded from 1099-b (barter) reporting. [Disclaimer: the above is for informational purposes only and should in no way imply that I condone or support the despicable act of sending money to the U.S. treasury.] Regards, Ragnar ===== Liberty Impact! Check out this free, hard-hitting weekly newsletter about privacy, liberty, offshore banking, tax avoidance & digital currencies. http://list.netatlantic.com/cgi-bin/lyris.pl?join=liberty-impact __________________________________________________ Do You Yahoo!? Yahoo! Movies - coverage of the 74th Academy Awards� http://movies.yahoo.com/ --- You are currently subscribed to e-gold-list as: [email protected] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
