Achmid Posted February 23, 2011 Report Share Posted February 23, 2011 Client sold gold bars, 10 oz, with a long term gain. These bars had no numismatic value, strictly a metal investmet. How are they taxed and at what maximum rate? Quote Link to comment Share on other sites More sharing options...
JRS Posted February 24, 2011 Report Share Posted February 24, 2011 Considered collectibles and taxed at 28% for long term. Quote Link to comment Share on other sites More sharing options...
Randall Posted February 24, 2011 Report Share Posted February 24, 2011 Side question. Can gold be held in an IRA? Or an ETF on the gold metal itself? Quote Link to comment Share on other sites More sharing options...
Joel Posted February 24, 2011 Report Share Posted February 24, 2011 Yes Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 25, 2011 Report Share Posted February 25, 2011 Side question. Can gold be held in an IRA? Or an ETF on the gold metal itself? Yes, BUT -- has to be a special custodian. There are companies that specialize in precious metal IRA's, and there are a half-dozen or eight repositories that will hold the physical metal that have dealings with those IRA companies. ETF's don't need a special custodian. Quote Link to comment Share on other sites More sharing options...
JRS Posted February 25, 2011 Report Share Posted February 25, 2011 Side question. Can gold be held in an IRA? Or an ETF on the gold metal itself? The ETF's are also taxed at 28% Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 25, 2011 Report Share Posted February 25, 2011 What about SPDR for gold? Quote Link to comment Share on other sites More sharing options...
JRS Posted February 25, 2011 Report Share Posted February 25, 2011 What about SPDR for gold? Yes, 28%. Quote Link to comment Share on other sites More sharing options...
Randall Posted February 26, 2011 Report Share Posted February 26, 2011 Yes, 28%. Thanks. I thought so. But that was my next question. Quote Link to comment Share on other sites More sharing options...
samingeorgia Posted February 27, 2011 Report Share Posted February 27, 2011 JRS: sounds like you have researched this. I would have thought that ETF's and SPDR's, being registered securities and not the actual precious metals, would be treated like other securities, i.e. regular capital assets. Isn't the 28% rate for "collectibles"? Quote Link to comment Share on other sites More sharing options...
JRS Posted February 27, 2011 Report Share Posted February 27, 2011 JRS: sounds like you have researched this. I would have thought that ETF's and SPDR's, being registered securities and not the actual precious metals, would be treated like other securities, i.e. regular capital assets. Isn't the 28% rate for "collectibles"? Gold, silver and other metals are considered collectibles. This must have been decided back in "the dark ages." If you go to the SPDR Gold Website, you will find this in the fine print. You will also find that the primary exchange is Hong Kong even though it is traded on the NYSE. "The Gold Shares represent fractional, undivided interests in the Trust, the primary asset of which is allocated (or secured) gold." Quote Link to comment Share on other sites More sharing options...
JRS Posted February 27, 2011 Report Share Posted February 27, 2011 This is also why I am not really happy when a client brings in ETF's. Some contain straddles, K-1's, and metal ETF's. The client really gets upset because they were "such a great investment with little or no downside in this market" when I tell them this year's tax prep fees are probably going up a $100. Quote Link to comment Share on other sites More sharing options...
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