Capital Gains Tax accounting for precious metals

Citizen

Citizen

Member
Hi guys,

Just wondering what sort of system/documentation you guys use to keep track of your metal purchases and sales? Especialy if one has been buying through private sellers, how can one legitimise the declared cost o purchase, should the ato be curious?

I've only been stacking for 4 months or so, so I've been meaning to ask this Q for a while. Thanks in advance.
 
Why would you want to declare your purchases or keep records?
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+1

I dont buy silver as an Investment I just like it because its density is perfect for skipping across lakes. way better than stones just kind of a hobby.
 
I was in the same boating accident as euphoria. I didn't have as much PM's as euphoria, but i'm still really upset about it.
 
All my stack caught fire in the 2011 Brisbane flood along with the receipts. Oh the Humanity!
 
Citizen said:
Hi guys,

Just wondering what sort of system/documentation you guys use to keep track of your metal purchases and sales? Especialy if one has been buying through private sellers, how can one legitimise the declared cost o purchase, should the ato be curious?

I've only been stacking for 4 months or so, so I've been meaning to ask this Q for a while. Thanks in advance.
Click to expand...

I didn't want to be the first one to say it but since everyone has also said what i was thinking ... SCREW it ...

Remember what they are doing with our tax money right (well a certain portion of it anyway) they bailing out the banks, pushing stimulus money out there (ie taking money out of my pocket putting it into yours & vise versa which is absolutely useless), putting money into building schools that were sub-par were the biggest benefactors where dodgy building companies who quoted 5x as much as they should and installing solar panels and phat bats that contributed to many unsafe home installs.

Ill keep the capital gains on my metals if there happens to be any , thank you very much. Anyway its not for investments its to put in my display cabinet cause i like shiney stuff and if i happen to be able to sell it for more then what i bought it for well, thats awesome, didnt know that happened to silver .. i already get taxed 50% on my wages above that certain bracket, thats enough for all those dodgy government projects :mad:
 
It could depend on what you're stacking.

If its coins, you could claim that numismatics is your hobby and CGT may not apply. Ask your accountant.
 
Big A.D. said:
It could depend on what you're stacking.
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And what your stacking for as well

If your stacking expressly for buying real estate eventually or other expencive items, I think its best to do it buy the book.

Not reporting your gains is all well but when you pay for that new shiney car with cash that magically appeared in your bank account eventually someone will ask questions
 
personhead said:
Big A.D. said:
It could depend on what you're stacking.
Click to expand...

And what your stacking for as well

If your stacking expressly for buying real estate eventually or other expencive items, I think its best to do it buy the book.

Not reporting your gains is all well but when you pay for that new shiney car with cash that magically appeared in your bank account eventually someone will ask questions
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^^
This.
 
From what I've read gold 99.99 & silver 99.9 doesn't apply to the capital gains rules. Obviously government can change this in the future.

If they ever come knocking & ask where I got my new Ferrari I'll tell them I swapped it for some scrap metal I had lying around.
 
enjoyed some of the answers but i keep receipts and if i make a profit i'll pay cgt.

provided i hold metal for over a yr cgt is only 22.5% (and that's with income over $180K pa; if you earnt under $37K that year you'd keep 92.5% of profits).

agree there's lots of govt wastage but flood reconstruction, hospitals, schools, roads etc do actually cost money...
 
+1 Digger

As far as I'm aware, you can only pay Australian tax in Australian currency. So, don't convert your metal to currency.

When the PM bubble hits, there'll be more than enough investors willing to swap their assets/ stock portfolio/ property for your PM's. There's no law saying a business contract must be in settled in cash currency (although I think 'boston' may have found in the constitution (spelt with small 'c' on purpose) they must be settled in Silver).

Real estate is the only investment that has taxes and duties imposed on it's transactions, so if you swap your PM's for a house, you will have to pay stamp duty in cash, I assume, based on a market appraisal of the property.

(Real Estate also attracts ongoing cash taxes & maintenance costs that other assests don't attract)
 
Citizen said:
Hi guys,

Just wondering what sort of system/documentation you guys use to keep track of your metal purchases and sales? Especialy if one has been buying through private sellers, how can one legitimise the declared cost o purchase, should the ato be curious?

I've only been stacking for 4 months or so, so I've been meaning to ask this Q for a while. Thanks in advance.
Click to expand...

What Gold? What Silver? Didn't you spend all your money in the bank in Casino?
 
er... yeah, about that half a mill, i kinda went on a week long coke fueled gambling binge with a bunch of high class escorts
 
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