> What your tax software is telling you is that the subsequent > sale of the gold in exchange for fiat is taxable as a capital > gain or loss.
OK, let's not get all turned around the tax-go-round here. I knew it was a capital gain before I entered it on Schedule D Capital Gains and Losses so my software didn't really tell me anything which isn't the point I was trying to make. Which is: The tax code is ambiguous enough to let you err in their favor. Suppose your tax rate is 32% or so and you don't bother to classify your gold exchanges correctly or should I say effectively? You would end up paying the 32% rate and they will never bother to correct you. Whereas if you read the fine print, it tells you that the "fiat" currency generated by the purchase and sale of collectibles (metals) can only be taxed at 28% max. This year it's going down "accordingly". On another note- if the taxman were to allow us claim our e-gold transactions as Barter I could say here is a REALLY stupid taxman. PS I am acquainted with a real tax proffessional and we discuss these abiguities occasionally. His advice to me? "You're so far down on the list of important audits that it will never happen." Seriously though, my tax software is Income Tax for DUMMIES and its indispensable for people who can't put two sticks together without a calculator. --- 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.
