28% Collectables Tax Avoidance Strategies

[renovator]

I am new to investing in PM, thanks for posting this otherwise I would have never new this. It now seems harder to actually make a profit off gold and silver.. Even if they were to rise 28% in value, which is alot! You wouldn't make a dime because you would have to pay 28% tax lol. Love it....

28% of your profit not 28% of the entire value

 

[Camreno]

Okay that makes sense thanks for your comment. Still a lot!

 

[Icon]

In the US, if it's under a certain amount, I thought it was not reportable? Like under 1000 oz, or under a $10,000 transaction, no Report is made.

 

[Pirocco]

Okay that makes sense thanks for your comment. Still a lot!

As said 2 times "the latter is tax on the "extra" when sold, not on the value of the item itself."
To make it clear along figures:

You buy a collectible for $100
You sell it for $130
You have to pay $8.4 tax
You have $21.6 more.

You buy a collectible for $100
You sell it for $2000
You have to pay $532 tax
You have $1368 more.

The latter is a margin (extreme) case, as to make clear that your 'alot' just goes up and down with your profit.
The less tax you pay the less profit you have.
The more tax you pay the more profit you have.
It's like it is: a percentage. A rough 1/4th of the profit, and both tax and profit amounts go up and down together.