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Reporting bullion sale profits to IRS

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Bremick

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Jan 17, 2011, 11:51:49 AM1/17/11
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A question about where on IRS fed tax forms to report profits from a sale of
silver bullion (Kitco). I understand I'm stuck with a 28% rate, but since a
minor silver bullion profit doesn't seem to fit the income criteria on any
line in a 1040 or a Schedule B, maybe someone with experience in this could
offer advice. Gracias.


Richard L Hall

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Jan 18, 2011, 12:29:45 AM1/18/11
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You would report it on schedule D just like any other capital gain and then
on line 13 of Form 1040.

--
Richard
http://www.richlh.com


"Bremick" <rem...@cox.net> wrote in message
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Bremick

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Jan 17, 2011, 2:16:12 PM1/17/11
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"Richard L Hall" <ric...@comcast.net> wrote in message
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> You would report it on schedule D just like any other capital gain and
> then
> on line 13 of Form 1040.
>

Thanks. I'm told though that profit from a bullion sale is not a capital
gain and that it is taxed as ordinary income, even if held for a year or
more. I didn't want to record it in the wrong place, but then I guess I'll
just put it "somewhere" with an explanation and let the IRS figure it out.
After all, they've now decided it's too much trouble or cost to send us (who
still file paper) the proper forms and instructions we've always received.
I never realized this practice had ended until I brought up the subject with
friends. I hate it when the IRS presumes we'll figure out for ourselves
what we need, will buy tax software, or will hire someone to handle the
task. I know it's not that difficult, but it has always confounded me.


Richard L. Hall

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Jan 17, 2011, 4:20:14 PM1/17/11
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"Bremick" <rem...@cox.net> wrote in message
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As near as I can tell, it is still reported on Schedule D, Line 18 and you
have a worksheet that must be done on the instruction page D-8 to get the
28% rate.

http://www.irs.gov/pub/irs-pdf/i1040.pdf


--
Richard
http://coins.richlh.com/MyCoinLinks.htm
http://www.richlh.com
Don't lament that the rose bush has thorns. Rejoice that the thornbush has
roses. [Ancient Egyptian Saying]


Richard L. Hall

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Jan 17, 2011, 4:43:23 PM1/17/11
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"Richard L. Hall" <richl...@richlh.com> wrote in message
news:ih2bqg$9qn$1...@news.eternal-september.org...

>
> "Bremick" <rem...@cox.net> wrote in message
> news:ih24i0$74a$2...@news.eternal-september.org...
>>
>> "Richard L Hall" <ric...@comcast.net> wrote in message
>> news:ih1u54$ka5$1...@news.eternal-september.org...
>>> You would report it on schedule D just like any other capital gain and
>>> then
>>> on line 13 of Form 1040.
>>>
>>
>> Thanks. I'm told though that profit from a bullion sale is not a capital
>> gain and that it is taxed as ordinary income, even if held for a year or
>> more. I didn't want to record it in the wrong place, but then I guess
>> I'll just put it "somewhere" with an explanation and let the IRS figure
>> it out. After all, they've now decided it's too much trouble or cost to
>> send us (who still file paper) the proper forms and instructions we've
>> always received. I never realized this practice had ended until I brought
>> up the subject with friends. I hate it when the IRS presumes we'll
>> figure out for ourselves what we need, will buy tax software, or will
>> hire someone to handle the task. I know it's not that difficult, but it
>> has always confounded me.
>>
> As near as I can tell, it is still reported on Schedule D, Line 18 and you
> have a worksheet that must be done on the instruction page D-8 to get the
> 28% rate.
>
> http://www.irs.gov/pub/irs-pdf/i1040.pdf
>
>
Just type "bullion" in the find box or go to page 131 in the instructions.


Bremick

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Jan 17, 2011, 5:40:17 PM1/17/11
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"Richard L. Hall" <richl...@richlh.com> wrote in message
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Thanks again. I guess there's nothing any more relevant than what's there.
I still don't relish going through the page of worksheet calculations in
order to pay Sam 28% when my income tax rate may not be that high anyway.
That may something for ETF's.


MKW

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Feb 4, 2011, 12:55:45 PM2/4/11
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Do they have a record at the IRS of what you paid for the bullion.
Its a hobby item and could probably be shown to have a loss.

Bob-tx

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Feb 4, 2011, 2:43:30 PM2/4/11
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"MKW" <mwelb...@aol.com> wrote in message
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> Do they have a record at the IRS of what you paid for the bullion.
> Its a hobby item and could probably be shown to have a loss.

Yeah, you probably could, if you are a cheat.
Nobody likes to pay our outrageous taxes, but
honest people do.

Where do you stand?

Bob-tx

MKW

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Feb 4, 2011, 4:09:09 PM2/4/11
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But these are personal products. Not income from doing work or
selling capital investments.

MKW

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Feb 4, 2011, 4:21:55 PM2/4/11
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And of course I am implying that with sales of collectibles, one can
use the same rules as with stock...netting your losses and gaines. I
dont collect for profit..only enjoyment so usually if I sell its to
make room for something else...hence I have had more losses that
gains. The price to enjoy is what I am paying.
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