Tax Man "Why did you withdraw $1,000,000 from your account?" Person "None of your business." I don't believe you have any obligation to tell the tax man ANYTHING in this situation. The receipt of large amounts would be a different story
Correct me if I'm wrong, but the previous loss does not have to be from the sale of PM's in order to offset a capital gain. Any capital loss can be used to offset any capital gain, regardless of the asset class.
Correct. The clarification was that it isn't a claim against income, it is an offset against capital gains.
I know someone who has just started online clothing store as an income supplement does not have to inform ATO if T.O is less than $75 K each year. I think they will change the tax laws and take their cut when the price goes rampant. The government will want to take a slice of the pie. If they get too greedy I see a lot of precious metals going into criminal organisations via the black market
Why would we? If the govt and its clubs disguise their theft along inflation, why would we not have the same legal right to disguise our undoing of it? And avoiding losses, how does that count as 'gain'? If I sell over a decade 500 American Silver Eagles to Freddie, at a price that is double the one of today, and the prices of the stuff I want to buy with the proceeds, also doubled, then what was my gain? I wonder about your wonderings, silver fellow citizen lol.
My question then is, I buy a 500 pieces box ASE's. I store it. sell it. Unlike your jeweller example, the sold product is the very same as the bought product. Why on earth would I then pay tax on addition of value? I didn't add any. Why should I pay tax on doing nothing with something? Also, the jeweller only pays tax on his addition of value. Not on the whole value as relative to zero.
The question of why is irrelevant: the rules are the rules and if you don't play with them, the ATO will ensure that you comply.
A lot of businesses buy stuff and then resell it at a higher price without having done anything to it - retailers for example. Same as with shares. You buy them and then sell the same share later to someone else. Tax law isn't just about taxing value added, it also covers speculative price gain profits. CGT used to be inflation adjusted but that was changed to only taxing 50% of the gain if held for more than 1 year. That works out better for you if the accumulated inflation rate is less than 50% over the time you held the asset. But in high inflation of say 10% then after 5 years you are worse off.
Must I retain her for 12 months? She may gain considerably over that time and I wish to minimise any tax incurred.
if i stack mainly 1 ounce rounds or coins for retirement, i will swap them a few at a time for the basics in life. The taxman will be none the wiser, hide the stack , if he ever comes knocking, "I only had a couple of them, none left now"
Oopsie. Oh wait ... they never look at Silver Stackers, I forgot! Be careful what you write on the interwebz, it's there forever.
PM are an avenue of profiting without the tax man dipping in. I buy in cash and sell in cash. Never leaving a paper trail. For that very reason I stack my Ag up to 1kg for liquidity and my Au to up to 1oz.
