New Gold Tax

[broken arrow 1]

Hi All,

This is so sneaky. Under the new Health Care Legislation, there is a hidden provision in it.

Starting Jan. 1 2012 Anyone selling $600.00 or more in Gold, Silver coins or bullion will

be 1099 form to the IRS. This is one of there ways to help pay for health care. (unbelievable)

I guess there will be a huge sell off in Au Dec 2011

[HighPlainsSifter 1]

Hi All,

This is so sneaky. Under the new Health Care Legislation, there is a hidden provision in it.

Starting Jan. 1 2012 Anyone selling $600.00 or more in Gold, Silver coins or bullion will

be 1099 form to the IRS. This is one of there ways to help pay for health care. (unbelievable)

I guess there will be a huge sell off in Au Dec 2011

Its really not a Gold Tax, it is a small business tax. Any business that has any transaction over $600 will have to file the 1099. This is not only very bad from a financial point of view, but it is also horrible because it will be very time consuming. As if our tax laws are not bad enough.

What this will do, is make some Gold transactions from guys like us, go to the black market, if you sell over $600 bucks at a time, So I wonder if we wil sell our Gold in smaller quantities to avoid filing.

There is another concern I have besides this law. It is something passing like the Executive Order 6102. FDR passed this law back in 1933 and made it unlawful to hold/hoard ANY Gold, with a few exceptions. Of course this was changed by Republicans....But as Obama is really following in the Socialist footsteps of yesteryear, I am a bit worried that he may try something like that order, albeit a hybrid of it. We are already losing access to lands to even hunt for Gold and other metals, so any further legislature that would attack the collection of metals, would really hurt.

I welcome any opposing views on this.

[ron l. 0]

yep, what if the present gob. does make it illegal for us to own gold in quanities?

just another move to try and control our live's and everything else we do.they keep picking away at out freedom.

take care. ron

[Jim Gilmore 6]

So basically if you go into a pawn shop and sell $600 worth of stuff there is now a 1099 paper trail? Wonder if that will affect criminals on welfare?

[Jim Gilmore 6]

yep, what if the present gob. does make it illegal for us to own gold in quanities?

just another move to try and control our live's and everything else we do.they keep picking away at out freedom.

take care. ron

If the gov. were to make owning gold illegal. Do they have to provide a method to sell off the gold you have now ?

If Not then it looks like time for revolution. Was not that something the gernams did in the late 1930's?

There is no real reason for the gov. to take control of it.

[frank c 969]

ITS JUST another way of doing things, when the country is controlled by lawyers there's always "another" way of doing things.

Oh by the way wellcome to the "country of laws"

[Au Seeker 3,185]

Executive Order 6102 only affected gold coin, bullion, and gold certificates, it didn't have any affect on people owning or mining raw gold, it was in my opinion a double cross perpetrated on the people of the USA even though they did pay you for any gold that you were required to turn in at the going rate of $20.67, a person was allowed to retain up to $100 worth of gold, the bad part of it all was as soon as they got all the gold that wasn't/sent taken to foreign counties/bank accounts, they set the price of gold to $35 almost doubling it value now that they had complete control of the gold.

It could very well happen again, but it would be very bad this time IMHO as most of "We the People" are about feed up with the way the Government is seemingly taking control of our very lives!!!

Skip

[HighPlainsSifter 1]

Executive Order 6102 only affected gold coin, bullion, and gold certificates, it didn't have any affect on people owning or mining raw gold, it was in my opinion a double cross perpetrated on the people of the USA even though they did pay you for any gold that you were required to turn in at the going rate of $20.67, a person was allowed to retain up to $100 worth of gold, the bad part of it all was as soon as they got all the gold that wasn't/sent taken to foreign counties/bank accounts, they set the price of gold to $35 almost doubling it value now that they had complete control of the gold.

It could very well happen again, but it would be very bad this time IMHO as most of "We the People" are about feed up with the way the Government is seemingly taking control of our very lives!!!

Skip

Skip your facts are right and as I said, I look for a hybrid of that law. With deploying the 1099 on every transaction over $600.....well surely you must realize that they will stop at nothing to poke into our "poke"....

In studying EO 6102 during that time there were a lot less "rich" people in the nation per capita. The taxation of America is going to begin in earnest. Frank is not far off though....the more laws you have, the harder it is to fight them and the Government.

One more thing if I am be so bold. The Cap and Trade bill has ben shelved. As I said a few months ago, look for another Executive order, giving the EPA the power to limit carbon output and actually fine the offenders. Giving the EPA that power gets around Congress and also calling it a "Tax".

[paratrooper 40]

As I understand the 1099 rules there is another catch . If you do smaller than $600 deals with the SAME person and make a total of over $600 for the year you STILL get a 1099 . You gotta deal with different people and no more than $600 with any one . BUT , this puts da gubmint only one step away from knowing who you are . Just like the BATFE can walk into a gun shop and demand records they can come up with some kind of crap to get records from gold dealers as to who they dealt with for ANY amounts .

[sawmill 69]

OK Guys

As one who is real familiar with federal tax

codes and regulations,after I quit laughing I

will explain this so called new gold tax. :yuk-yuk:

This tax and 1099 requirements are a long ways from

being a new deal. They are just going to enforce an

old rule that the rest of us have complied with for

years. It is not a small business tax,but it is a way

of documenting income for non employment income,and

sales of goods by private parties,at $600.00 or more

per tax year.

If you have sold gold to a refiner,there is already

a paper trail. If the amount was over $600.00 ,you

may get a visit from the IRS,if it wasn't reported

on your 1040 or other forms at tax time.

This new enforcement policy is aimed at so called

hobby coin dealers,and hobby sales of gold and other

things. Any income generated by a hobby over $400.00

per year is reportable income,and moves you from a

hobby status. The $400.00 figure could have changed

since I last looked.

Several of the so called hobby dealers are hiding

income under the guise of a hobby. This is called

tax evasion in the real world. The 1099 is just an

information document. If your sales of gold does not

raise your income in excess ,it is not a big deal.

They are not going to come and tax you just for the

sale of the gold.

As a business I am required to furnish all contractors

with a 1099 ,so they can file it with their taxes. I

am also required to furnish a copy to the IRS. General

sales and purchases are covered by normal book keeping

and other documentation.Large cash sales or payments to

a vendor that doesn't have a federal tax ID number are

also reported on a 1099. That way the feds can track it.

Just for the record,the federal government has never

recognized ,prospecting,or mining as a hobby. This is

their way of letting folks know,that if you are going

to profit,from mining or prospecting,you will be treated

as a business,and pay taxes.

On the good side,if they can call us a business and

collect a few taxes ,they may let us survive.

[homefire 2,581]

Ok! If I sell 1000.00 in gold, I have not made 1000.00 in capital gains.

How do I Adjust the amount?

This is BS!!!!!!!

[sawmill 69]

Homefire

If you have bought the $1000.00 in gold and

are selling it,you deduct the buying price and

only count the profit. If this does not raise

your gross income on your 1040 enough to tax it

is no big deal. Any profit from the sale is just

added to your gross income. All the 1099 does,is

document the transaction. If the sale actually

did provide a taxable profit,it can be dealt with

by other means when doing your taxes.

If you found the gold while prospecting or mining

during the tax year,$1000.00 would not be a hobby.

You would have to file taxes as a business,and deduct

your expenses,like everyone else,that deals for a profit.

Hobbies were never meant to produce a profit or income.

Anything that does produce an income or profit is a

business,and subject to taxes.

If you are prospecting like the federal mining laws

intended ,you are a business,or should be. A business

can deduct most operating expenses,and some loss.But

unless you are selling several thousand dollars worth

a year,most people will never pay a dimes worth of tax

because of normal income and deductions allowed.

This new deal is aimed at people that are running a

business ,dealing with several thousand dollar a year,

while trying to hide it as a hobby.

[Jim Gilmore 6]

If your talking about selling gold you bought. You'll need to have paperwork showing what you bought it for. If you mean gold you mined. I'm guessing you'll need to show cost of operation,equipment and stuff to determing the actual value , however any business figures it's income vs. expenses. Being laws are written by lawyers. It looks like another move to find more work for lawyers so they fill out the taxes and add another charge to the cost of small mining.

[Micro Nugget 770]

Bottom line for prospectors: Best way to become a millionaire is to start out as a billionaire. And, yes, do save all those receipts that you rack up trying to find each extra gram of gold. They add up and likely will more than offset any 1099 statements.

[Rudy 0]

The good news is that the high dollar Mine Labs can be a write off....now that's what I call STIMULUS!

[Hoser John 1,240]

CASH IS KING-ALWAYS-John

[ringer 1]

The new HCB rule on 1099's is not the same as the old laws. I own a business and instead of listing all purchases from each vendor as a single entry on my tax forms I will have to issue a 1099 to each of the 30 vendors I have. Some businesses that sell retail will have tens of thousands of 1099 forms to fill out. It is just a way for the IRS to force business to handle their duties to catch tax cheats. Another job killer since every motion we make costs us money.

[HighPlainsSifter 1]

The new HCB rule on 1099's is not the same as the old laws. I own a business and instead of listing all purchases from each vendor as a single entry on my tax forms I will have to issue a 1099 to each of the 30 vendors I have. Some businesses that sell retail will have tens of thousands of 1099 forms to fill out. It is just a way for the IRS to force business to handle their duties to catch tax cheats. Another job killer since every motion we make costs us money.

Thats what I was saying too. The increase in paperwork is enormous. at IRS.GOV the section for "whts new" is large and demanding.

[Idaho Al 1]

Ringer hit it right on the head, some small busnesses will stop dealing with gold/ silver or raise their precentage to cover the added expences of the paperwork. There is a local busness that said they no longer will deal with coins and gold because of their low profit margin and added paper-workload...........Idaho Al

[ron l. 0]

just another way to take more controll of our live's as our freedom is slipping away.

take care. ron

[homefire 2,581]

What a bunch of crap!

This just shows how this bunch will force there hand on any agenda they want.

This was pushed in a bill having NOTHING to do with Taxes.

All it's going to do is put undue burden on small businesses and Force people selling small quantities of gold to treat there End of Year Taxes as they are a Business.

Just because you sell $600.00 in gold does not mean you made $600.00...

I predict a widespread underground economy being born.

[El Dorado 965]

What a bunch of crap!

This just shows how this bunch will force there hand on any agenda they want.

This was pushed in a bill having NOTHING to do with Taxes.

All it's going to do is put undue burden on small businesses and Force people selling small quantities of gold to treat there End of Year Taxes as they are a Business.

Just because you sell $600.00 in gold does not mean you made $600.00...

I predict a widespread underground economy being born.

Just an FYI, there already is