thinking hypothetically here, the time will come when i want to convert part or all of the stack back into fiat. Say i sell some and want to put it onto the mortgage, is the bank or tax man going to ask questions as to where this money came from? Tax man ask for capital gains? Maybe i just save cash at home instead of the bank. Your Thoughts.
This is why I always ask for a proper receipt. People supposedly selling for their grandmother, private sales, dealers who are not dealers etc etc. Bank transfers provide a basic paper trail but the lack of product description and quantity may leave purchasers with problems if the product turn out to be fake or the product is not as described. cheer$
not trying to evade or the like more trying to find out what is likely to happen when changing back to fiat. How is capital gains calculated? How is it calculated when there is no record of what, when and for what price? Just trying to better understand how coming out the other side works.
From memory there is no CGT on coins under $500. If my fifties ever hit that, I'd be quite happy paying the tax.
Have wondered this myself, and if I can produce a recite that is higher than what I sell it for can I claim a capital loss to off set any capital gains I may have inured from another asset.? Then again asking these questions will probable never get a 'right' answer as there are 3000 odd pages of tax 'law' and I doubt anyone really understands it.
This is how I intend on quarterbacking it. I have recently started purchasing and storing bullion in Singapore which doesn't have CGT. If I am out of Australia for more than 12 months and meet the criteria for NOT being a resident of Australia for tax purposes and sell the metals while overseas from what I have researched I don't pay any CGT. I can then return to Australia clean and clear. An 18 month trip to a cheap destination like Thailand or similar on an ED visa would do the trick.
so does everyone keep records of the profits made from trading a few silver bullion bars or coins? So if i made $50 profit for the year, i'm supposed to report that on my tax return? I can understand amounts in the 1000's of $ would be of interest to the ato but petty amounts? Is there a threshold? Stacking is starting to sound like complex way to get cash out of the banking system. Withdraw cash and keep it safe sounds easier.
this is the scenario i was thinking about- over the course of say 10 years, i stack pm's and cash under my pillow. Basically lots of little withdrawals over the years but not actually spending it so to speak. Then one day i want to make a payment on the mortgage with the savings. I sell the pm's, for argument sake, at a small loss. I walk into the bank with $20k and say i'd like to put this on the mortgage. Will i have to show how i got it?
this is the scenario i was thinking about- over the course of say 10 years, i stack pm's and cash under my pillow. Basically lots of little withdrawals over the years but not actually spending it so to speak. Then one day i want to make a payment on the mortgage with the savings. I sell the pm's, for argument sake, at a small loss. I walk into the bank with $20k and say i'd like to put this on the mortgage. Will i have to show how i got it?
Someone posted about "Know your Customer" in banking a couple of months ago, the object of KYC is: in order to identify potential fraud and to remain compliant with Government (there's that word again) legislation.
Pay your mortgage from your bank account and do all your grocery shopping with the proceeds of your silver, it doesn't take long to spend a couple of hundred in Coles or Woolworths and who keeps their grocery shopping receipts?
Here's a prediction. The way things are going in the world financially, fiat will be defunct and unuseable within 10 years - everything money wise, will be electronic. Problem solved, you won't be able to use the fiat tucked under your mattress!
I think if that happened there would be a bartering system that would pop up pretty quickly, it has happened in the past. If you want ..... Give me 100 ltrs of fuel and pay to have the outboard on my boat fixed. Both people get what they want and no electronic transaction. I know of a solar installer who put a solar system on a blokes house in exchange for free hamburgers for life I am still trying to work out who came off better out of that deal.
With regards to the 10k amount a member was mentioning, he is talking about AUSTRAC, if you walk into a bank and deposit over 10 k in one day, they will fill out a report and send it in. This is for a myriad of reasons. If you deposit 9900 one day and walk in the next and deposit another 9900, a good employee will file a report and this will look more "suspicious". I am not going to suggest anything immoral or illegal to you but I am sure you could work out how to do it yourself.*