Tax Those Golden Coins
Tax Those Golden Coins
As if having an unwelcome health care reform bill thrust down our throats was not enough we now find a small scarcely detected provision attached to the legislature that places gold coin purchasers and sellers at a major disadvantage.
We’ve all been taught over the years that the acquisition of gold and in particular coins embodies a great hedge against possible inflation. Most gold dealers will just about guarantee that the coins you purchase will intensify in value over the years that you hold on to them. You can generally find many name celebrities such as Glenn Beck and others, bragging up the benefits of owning and storing up on gold coins.
Unfortunately, section 9006 of the recently enacted “Patient Protection and Affordable Care Act” has amended the IRS Code to alter the actual scope of the Form 1099. The 1099 forms are traditionally used to report any miscellaneous income which may be associated with those particular services provided by independent contractors. However, starting on January 1 of 2012 the Form will also become a means by which the purchase of goods and services by the self-employed people can be reported to the internal revenue service. These forms will be required to be submitted for any amounts in excess of $ 600 during any calendar year. You may be asking how this affects you as a gold coin collector. These precious metals as well as the bullion will now fall into this same category and as such the coin dealers and the purchasers will need to submit the necessary 1099 forms to our government.
The IRS has claimed that these changes were required in order to tap into the vast reservoir of bypassed and unclaimed tax revenue owed. Naturally the underhanded way for our government to pass this bill was to tack it onto the health care legislation. Authorities assert that with the commencement of this newly enacted law they will amass over $ 17 billion dollars over the next 10 years.
This presents a major problem particularly for the coin dealers themselves as they regularly acquire their inventory from, not only other dealers but additionally from the public at large. This is an notable distinction from other types of businesses where the owner may transaction business with a limited quantity of suppliers only. What happens here is that each and every time an American taxpayer sells in excess of $ 600 in gold to a registered dealer the transaction must be reported to the government by both parties.
Some coin dealers frequently deal with thousands of customers weekly thus the owners will be bogged down with all the added government IRS paperwork. It is estimated that dealers could be filling out from 10,000 to 20,000 tax forms yearly.
Statistically speaking trading in gold coins has seen a drastic surged since Americas financial crisis has developed and Obama has assumed the office of President. Of interest in this rise of popularity is that the actual buying of gold in place of options has been an increasing trend with those individuals who are fearful of America’s economic policies under President Obama.
Copyright @2010 Joseph Parish
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Is obama really generating jobs for Americans or for illegal aliens?
Why is unemployment the highest in 60 years then?
It is not Bush doing this and this is not Bush spending trillions on things that are not working to put Americans back to work.
Unemployment tied to lack of immigration enforcement
March 17, 7:21 AM
Jim Kouri
Needs and rights of U.S. citizens take backseat to left-wing politics of divisiveness.
Although President Obama says creating jobs is his top priority, his failure to enforce immigration laws at worksites has led to job losses for American workers. That is the message of a new television ad campaign by Californians for Population Stabilization (CAPS) and allied organizations concerned about unemployment.
“The United States is suffering its highest unemployment rate in decades, yet President Obama has cut jobsite enforcement of immigration laws by 60 percent. How seriously should we take his claims that he is focusing on this issue?” asked Diana Hull, the President of CAPS.
The ads note that over 8 million jobs are held by foreign workers who are in this country illegally and ask Americans to call the President to complain.
Even when illegal workers are apprehended, they are typically released and free to take other jobs. Furthermore, the Obama Administration annually admits more than a million legal foreign workers under various immigration programs.
“Obama is truly hypocritical on this important issue. Even as he claims to generate jobs for American workers, he removes them with his immigration policy,” Hull said.
It’s the Unemployment Line, Stupid
James Carville coined the axiom “It’s the economy, stupid” to deftly underscore the electorate’s anxiety that swept Bill Clinton into the White House in 1992. Nearly two decades later, the Washington power elite now trumpets an economic recovery even as Americans watch living-wage jobs disappear faster than the Dodo bird. Despite brutal job losses that have hammered the American working and middle classes, more than 125,000 foreign workers continue to arrive legally in United States every month. Joining these legally imported workers each month are nearly as many illegal immigrants, most of whom are hungry for work and in need of social services that were created for America’s most at-risk and in-need citizens.
The 2010 Forecast: American workers shouldn’t expect any more appreciable relief from Washington this year than they received in 2009. Most Democrats favor open borders and mass amnesty in order to boost their voter registration in key states, while many Republicans generally oppose them only as a means to leverage greater concessions from the Democrats on foreign worker visas for the U.S. Chamber of Commerce.
The Late, Great State of California
The Golden State’s make-believe economy of the past two decades has vanished with the bursting of its ethereal dot-com and fantasy real estate bubbles, leaving nearly 40 million Californians to face successive budget deficits of more than $20 billion annually, crumbling infrastructure, sustained drought and jobless rates deep in the double digits. Yet the professional politicians perpetually roosting in Sacramento appear alternately paralyzed and punch-drunk; frozen in partisan acrimony one moment and stumbling around with tax-and-spend proposals the next.
The 2010 Forecast: Hope for little and expect even less. This train of unrestricted growth and wild-eyed spending has been out of control for years now and Sacramento has proven itself unable and unwilling to act decisively. Even at its present population growth rate of around 1% — almost all of which is due to immigration and birth to immigrants — California will hit nearly 60 million people by 2050 and 85 million people by the end of this century. If you think things look grim now, try to envision what your kids will be facing in a state twice as crowded but with dramatically less resources than it has today.
CAPS and its partners in the Coalition for the Future American Worker are running the ads to educate the public about immigration policy and its impact on unemployment. The current ads can be viewed at http://www.CAPSweb.org.
Source: Californians for Population Stabilization
http://www.examiner.com/x-2684-Law-Enforcement-Examiner~y2010m3d17-Unemployment-tied-to-lack-of-immigration-enforcement
I am American Indian so do not use white as an excuse, when it should never be used as a defense for illegals anyway.
I agree, I am not a Bush fan either.
My wife’s grandfather gave us a golden coin as a wedding gift a couple of years back. The wedding was in Poland and the story is that the grandfather bought the coin years ago under communism through the black market as an investment. I know nothing about coins but through a little research on the web, think I may have something of significant value. From what I can tell, it is a 1926 $20 Saint Gaudens Double Eagle. Please excuse my ignorance but I will try my best to describe it. It is a very shiney golden and heavy. It has no blemishes or tarnishes that I can see. If you were to look at it with a very scrupulous eye, I guess it has some minor scratches on the flat surfaces but I don’t know if they would be considered scratches or not, but its definitely in great to exceptional condition. I’m just wondering the rarity and value of this coin. I wouldn’t consider selling it, and would love to have a family heirloom on my hands. Additionally, how should I store it? I just have it wrapped in a paper towel right now, inside a jewellery box. Any information would be appreciated.
As an additional aside, it was very entertaining to bring it back from Poland. I left Poland immediately after the wedding, as my wife stayed an additional 2 weeks. I kept the coin in my wallet, and really set the metal detector off in the Warsaw airport. I took my wallet out, and sent it through the x-ray machine and saw on the screen, it lit up like a giant glowing ball. They let me through security to the gate. Then about 15 mins. later two guards came walking around looking and eventually approached me. They said in broken english, “We need to see your billfold”. They pulled coin out and looked at it puzzled. I wasn’t sure of the legality or tax consequences of carrying the coin so I said nervously “It’s my lucky coin”. The guards looked at it, tossed in the air, one made a comment about how heavy it was, literally tossed it about 2 feet to the other guard, who gave it back to me and sent me on my way.