- quote -

Gold ingots and bullion are collectibles (28% capital gain).
See the instructions for Schedule D and/or work back through
any of the related publications to the code itself.

Ira Smilovitz

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"rick++" <rick303[at]hotmail.com> wrote:

- quote -

The 28% rate is for collectibles and art. Gold in and of
itself is not art. Gold jewelry would be art, gold ingots
would not.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"rick++" <rick303[at]hotmail.com> wrote

- quote -

Huh? Any change in the investment's value isn't a gain or
loss. You have to actually sell your position (or parts of
it) to realize the gain or loss. At that point the resulting
gain or loss is either a short-term or long-term gain or
loss depending on the holding period of the underlying
investment. Long-term cpital gains would be taxed at no more
than 15%.

As far as whether or not your "gold" is a collectible or an
investment would depend on what it is you actually hold. If
it's just a piece of paper showing you own gold, that is
clearly an investment. Gold coins, etc in a safe-deposit
box would most likely be considered a collectable.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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"rick++" <rick303[at]hotmail.com> wrote:

- quote -

It depends on how they are held and whether you are a cash
basis or an accrual basis taxpayer. If you are an accrual
basis taxpayer, you change to LIFO (Last-In is First-Out).

Last time I checked the United States is the only country
that allows LIFO because it is a tax scam to provide relief
from inflation.

Dick

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I heard on a radio business show that the rise in the price
of gold is not considered capital, so it does get the long
term capitals rate. Some gold items are considered
collectables, so they qualify for a slightly lower rate
(28%).

Investment businesses that deal in gold, e.g. a mining
company, qualifies for capital gain. Their profits closely
track gold price. Mining companies are not the best example,
because many follow the 19th century practice of paying
large dividends.

If this true, then does this apply to all commodity profits?

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