As millions of everyday citizens watch their local banks decrease savings accounts interest income to under three percent they have been withdrawing their savings and investing in gold coins whose market is not controlled by any government agency. They have joined investors who have concerns about the volatile market and are dabbling in gold bullion and coins as the US dollar continues it’s free fall devaluation.
I remember forty years ago when the market price of gold was $35 per troy ounce. Back in 2005 you could have acquired gold for under $500 per ounce. At 9 a.m. today gold was trading at $1,193 per ounce. Note: This post is not being written to encourage anyone to invest in any commodity. My issue is the hidden tax reporting.
Did you know that the recently approved national health legislation has a “provision to the law that puts gold coin buyers and sellers under closer government scrutiny?” July 21 , 2010 ABC News.
For those who gamble, be it in Las Vegas, at Del Mar racetrack or a lottery ticket at your local liquor store, all winnings over $600 are immediately reportable to the IRS on a form W-2G. That includes bingo, lotteries, poker tournaments or horse racing.
Now big brother is starting to look for other revenue sources that may be escaping taxation in the form of trading in gold.
“Every time a member of the public sells more than $600 worth of gold to a dealer. The transaction will have to be reported to the government by the buyer.”ABC News.
There’s more to this “health care” legislation. “Starting Jan. 1, 2012 Form 1099’s will become a means of reporting to the IRS the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category.”
This tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation.”
Eventually this legislation falls under the redistribution of our “wealth” under the pretext of “health.”
November 2nd cannot arrive soon enough for me.
Caveat. While this is the year to remove incumbents unless they are challenged by well financed challengers we will end up with status quo that is simply unacceptable
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