Hi everyone, First post here, I've had a bit of a look around, but couldn't find what I was looking for. I bought about 450toz of silver, mostly 1kg bars in feb this year. What are the tax implications if I sell? Some countries don't tax precious metals, no idea about Australia. I bought from a private trader, there is no official record of my purchase. Cheers for any info.
Because silver is so volitaile couldnt u sell at a profit but fudge it and say u made a 'Loss' ? Dont need ID to sell <$1000. Maybe just sell in batches?? I dunno, everyone else seems to avoid tax with loopholes or lying
if you only dealt in say cash trading then yes, but i guess the moment you start putting money in the bank and large amounts of it both the banks and ato get suspect.
Yeah you have to pay capital gains on it if you decide to declare it *cough*, so basically you are taxed the full amount of profit you make if you sell it within 1 year of buying it, or you are taxed on 50% of the amount of profit if you sell after a year or more after the purchase date.
Be careful buying quantities like that - many members here have suffered tragic boating accidents in which they have lost their whole stack...
Just to clear this up, your details are not recorded if you sell under $1000 worth of silver to a bullion dealer? Is this the same with Gold? Another issue I have is that I was given some gold as a gift, so how would they work out my capital gain? Just tax the whole lot?
Heard some good advice that I'll share here: "Any tax liability, regarding bullion sales and capital gains/losses, is between you and your tax guy." ...and sell amounts below the reportable threshold.
Investment grade PM products you can buy free of GST. When you sell, it's Capital Gains Tax, as has already been mentioned. My other advice is to pay your taxes. There are dozens of ways to reduce your tax legally.
I'm pretty sure many of us a looked at as collectors. Small sales to others are fine i believe, but once you start selling back to say the mint for over $10,000 i think they inform the ATO. Its a bit like selling cars you have done up. 1 or 2 is fine, but if you start selling 10 or more for eg they will jump on you if they find out. Nothing like the good old paper trail. Unless your making hundreds of thousands a year i dont think they are to worried. $200 Silver and upwards could put some in this catergory though. Seek your own financial/tax advice from a professional. Scorp
I've heard of the boating accident thing numerous times here, but what does that mean? Claiming capital loss ?
Capital gains tax as it relates to metals is totally criminal. You buy the metal to preserve your wealth. Then when the fiat currency which your society uses goes down relative to your metal, you sell off some of your metal to pay for expenses. But you get a higher number of fiat dollars than you originally put in, although the purchasing power has likely NOT gone up. And yet they try to tax you as if you have PROFITED somehow. Absolutely criminal. Always sell privately. Never sell to a dealer. Its very easy to find buyers in the private sector who will pay you cash. Use your cash to buy what you need, and keep your bank account balance low. Never sell lots of metal for huge amounts of cash to put in the bank. Regard your metal stack as your savings account. There's no reason to withdrawal from it unless you need the funds for something immediately. Live like this and you'll probably never have to worry about capital gains tax.
Lost on the ocean bed im thinking. They cant make you pay CGT if its lost ,stolen or destroyed can they! lol Scorp
