Regarding capital gains, a simple definition would be the difference between the sell price and buy price less expenses. But this definition takes no account for inflation. During a hyperinflation event, if a transaction was made either through sale or swap for another asset (both considered a capital gains event) then provided I held the assets for more than 12 months, I would be taxed on 50% of the gains. But what if a substantial part of those gains were due to underlying inflation. Is there any part of the Australian tax law which has provisions for inflation with respect to capital gains ?
That's the biggest problem with CGT - it doesn't take inflation into account (anymore). The "old" way of calculating CGT used to take inflation into account in Australia, but that only applies to assets acquired before 30 September 1999, and only up to that date (I believe). I'm not an accountant or financial advisor, so DYODD.
Yes, arr... another gift from our "greatest treasurer in the world", halve the CG if held > 1 year, but no adjustment for inflation.
But what if a substantial part of those gains were due to underlying inflation . The entire gain will be due to the underlying inflation.
This discusses the issue well, but I'm not so sure about borrowing to buy. It all sounds great but you have to be sure inflation will happen AND you will still have a job to service the debt. http://danielamerman.com/articles/GoldTaxes1.htm
Don't sell. Sit on it until gold is currency again What happens with cgt if you exchange an asset though? i.e. dont sell, but exchange it.
Sorry, exchange/barter, ATO will compute the market value of the goods you exchanged the metal for and work out CGT from that.
Just tell the ATO you actually paid a higher price than you sold it for and then claim a tax freebie. How would they know when you bought it? Many here wouldn't have receipts for much of their stacks, so who is to say when it was bought. On a connected issue, if any of you stackers out there have a stack at home and don't have receipts for it, just hope the cops never have to visit you for any reason because they will confiscate it if you can't provide a paper trail.
Are you saying if I want to swap my lunar 1 oz gold rabbit with someone who has the lunar 2 version, than I have to pay $1000 capital gain tax?
Don't know, that is a bit more tricky as it is sort of like for like. While this is US focused, you may find it useful getting tax advice http://solari.com/articles/Tax_Issues_re_Precious_Metals_Holdings
It doesn't matter what "tax break" they give, they just take it back some other way. The US tax tables are supposed to be indexed for inflation. Of course, official inflation is usually 1/2 or less of real inflation.
THAT is why the government and central banks LOVE inflation ... it's what they call a "stealth" tax... If that was not enough, the barstads then introduced what they call a "capital gains" tax - just in case you're intelligent enough to protect yourself against the inflation tax - so now they (government) can steal much of that which would have been stolen by inflation anyway via this illegitimate/immoral new tax - CGT "Capital Gains" tax is the most repugnant form of theft that the government is using to steal from people. If it truly was a "capital gain" tax, then it would only be applied to cases when there actually was a capital gain. In its current form, it merely enforces on people the theft resulting from inflation ... and means there is no real way to protect oneself from the thieving bankers and government who PURPOSEFULLY CREATE INFLATION in order to steal from people that for which they have toiled!!
If this is true then I'm afraid we truly are living in a sorry assed country! So now you are guilty until proven innocent???!!! no paper trail means that the goods must be stolen/illegal?? no requirement by state to prove this beyond reasonable doubt??? And you call this a "free" country??
NSW has an "unexplained wealth" confiscation law. It's intended to be used to take harbourside mansions and Ferraris off people that the police KNOW are drug lords etc but can't secure a conviction against - they can instead ask you to justify how you bought your $5m house on the dole etc. Soooooooooo open to abuse in the wrong hands.
yes always keep your paper trail. otherwise how can you prove the stack is legitimate and paid for with after tax dollars?
I think thats the whole point - one should not have to PROVE anything to anybody - especially the thieving government! Thats what the presumption of innocence is all about and the requirement by the state to PROVE that somebody is guilty of an offence. Its NOT supposed to work the other way around - that you are guilty by default unless you can prove yourself to be innocent... But i guess the sheeple have been so brainwashed in this country that the police state can now walk all over people without even a peep... pathetic
Ron Paul is at this very moment trying to introduce the Freedom Currency Act (or similar name) which will, if enacted, allow gold coins to be traded without CGT in the US. Just need to hope Australia does something similar.
