I am curious as to what "generates" means? Does the ATO count income on a mark-to-market basis or when assets are sold. If $55k of gain on asset sales was the main criteria, you would be limited in what you could sell each year, but that wouldn't be a problem for most members.
*thinks "silver doesn't grow on trees"* :/ It's not just CGT that's a bull breaker. The harder we work the more we get taxed.
I dont have any silver. Every time I try to buy some I get ripped off and lose my money. So all of those bank transfers and withdrawals are just lost income. But since I am slow on the uptake I keep doing it.... Can't tax stupidity... well actually you can
Inflation protection is why you buy any asset. Inflation gains on other assets are taxed, I don't see why precious metals would be special in this case. Don't need s115 to say gold and silver are legal tender - the coins the Perth Mint mint are explicitly legal tender, issued under the Currency Act 1965. Problem is that the legal tender value of a coin is far below its market value. I'm sure there is some carve out that says CGT applies if coin/note's value goes over its legal tender value, otherwise numismatic profits on coins and note would be completely tax free. GST law is separate from tax law and is not based on whether the coin is legal tenders. Perth Mint lost an argument with ATO that our numismatic coins were identical to bullion versions, legal tender etc and so should not have GST on them just like bullion.
.just another reason to add to the list why cash and other assets at the moment should be swapped for silver.
YEAH! Who the f*ck do they think they are fleeing war-torn countries that we start wars in! And no, asylum seekers arn't breaking the law: But I'm sure that won't mean anything to you, as long as you have your VB, your southern cross tattoo and a 'f*ck off we're full' sticker on your ute you'll be right, mate.
I know a retired jeweller who only designs and fabricates a small number of very intricate, high value pieces a year. It keeps him busy. The last one he sold went for ~$38k so he could easily do $100k per year just as a hobby.
Hey all, Sorry to bring up an old thread, but just wondering if anyone has declared CGT on metals and how they have kept a record on purchase / sales that would be satisfactory for the ATO? I know sometimes there are boating accidents but just wondering to avoid questions down the track - how to go about it properly? would a spreadsheet of purchased cost / sold item price be sufficient?
Just a numpty question. If you bought you stack at the highs of the last two years. Ie $45/50 per oz for silver. So let's say a price average of $42.00 and sell it today at $32 per oz can you clam the $10.00 per oz as a CGT loss?
^^ Seconded, shouldn't really be an issue if you have receipts. Remember the 50% CGT discount only applies if held personally and for more than one year and that if you then immediately buy back the same asset, it is regarded as "washing assets purely for tax reasons" and isn't allowed. I'd be confident an accountant would say if you sold bars, claimed a loss, then bought back in with coins, this would be 100% OK. So avoid exact-like-for-like/identical in other words. But as BB says, best ask a decent accountant.
what if we have been purchasing off private buyers here on ss, with no receipts? or going to ss meetups and buying at auctions?
Good question. Personally, I believe if you wish to play the game of above-the-board-accounting and claiming legit capital losses then it is smart (and easier) to have receipts. I also keep screenshots of PMs, with the date. There are those (not Silver Stackers!) who would fly under the radar and not declare gains, perhaps understandable in the black economy, in which case it's hard to eat your cake and have it too and claim losses with no evidence. Nobody here does that of course!
I think the greatest problem for some (not Silverstackers) might be when selling large amounts. Most dealers would pay by cheque or eft. Hard to hide that.
I would hazard a guess that most stackers here are in long. They are holding for the future, a hedge against inflation. If you are buying silver as a potentially life changing investment/saving you need to be in pretty deep. In the long, at least 20kgs. So if you are buying for the long, how are you planning on selling one day? Cash in the street? face to face? what if silver is $100 an ounce, thats $64000 worth of hard bullion your inviting a stranger to come and get off you. Say you arrange a sale with a trustworthy buyer, do you expect them to pay in cash? 1. How would they explain a $64k cash withdrawal without explaining to the taxman what was bought 2. How would you explain a $64k cash deposit without explaining to the taxman what you sold. Sometimes I dont think stackers get the big picture. Sure, there will be some who say "I will never sell my silver" (so why bother) or "I will use it to barter when SHTF" (I respect this depending on where you live). My advice, keep your reciepts, keep your dates, keep a log. You never know if you will need it one day. '
You can't claim capital losses, just accumulate and carry them forward, or write them off against capital gains. So, if you don't make any capital gains to write them off against then it makes no difference.
True. A capital loss is only useful if crystallized against a gain, hence my point. If someone doesn't declare any gains, how can they expect to benefit from a loss? An exception could be that in the future, there could be an unplanned CGT event resulting in a capital gain, from the sale of a non-bullion asset, in which case it would be handy to have a previous loss from a PM sale carried forward to 'claim'.
