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| Gold Coin Sellers Angered by New Tax Law |
| 2010-07-21 |
| Those already outraged by the president's health care legislation now have a new bone of contention — a scarcely noticed tack-on provision to the law that puts gold coin buyers and sellers under closer government scrutiny. The issue is rising to the fore just as gold coin dealers are attracting attention over sales tactics. Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of Form 1099. Currently, 1099 forms are used to track and report the miscellaneous income associated with services rendered by independent contractors or self-employed individuals. Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change. This provision, intended to mine what the IRS deems a vast reservoir of uncollected income tax, was included in the health care legislation ostensibly as a way to pay for it. The tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation. Taking an early and vociferous role in opposing the measure is the precious metal and coin industry, according to Diane Piret, industry affairs director for the Industry Council for Tangible Assets. The ICTA, based in Severna Park, Md., is a trade association representing an estimated 5,000 coin and bullion dealers in the United States. "Coin dealers not only buy for their inventory from other dealers, but also with great frequency from the public," Piret said. "Most other types of businesses will have a limited number of suppliers from which they buy their goods and products for resale." |
| Posted by:Deacon Blues |
| #10 I think I prefer copper, zinc, lead, and certain pressure=sensitive explosive compounds to gold as a SHTF investment. Not that much less convenient and a whole lot more useful. |
| Posted by: Glenmore 2010-07-21 23:06 |
| #9 Yes, airandee, you do have to go to your room. ;-) |
| Posted by: trailing wife 2010-07-21 21:59 |
| #8 This tax reporting only applies to White Gold |
| Posted by: airandee 2010-07-21 21:12 |
| #7 I buy a US Eagle gold bullion coin every 2 weeks. Tell me WHY its any business of the IRS how I spent my money? OldSpook, Form 1099 only becomes operative when the dealers purchase goods and services (including gold) not when they sell, which is part of their normal business accounting. So if you sell an item or service to a business entity you have to provide a paper trail and also declare that income on your tax statement, as they will have a 1099 from the dealer. In the case of gold, people who sell to dealers probably bought when prices were low and would now trigger a capital gains event. Same would apply to jewelry, I suppose. |
| Posted by: tipper 2010-07-21 16:15 |
| #6 Likewise, if I want to buy a firearm from a buddy, what business is it of the IRS? |
| Posted by: OldSpook 2010-07-21 15:20 |
| #5 I buy a US Eagle gold bullion coin every 2 weeks. Tell me WHY its any business of the IRS how I spent my money? |
| Posted by: OldSpook 2010-07-21 15:19 |
| #4 I wonder if this applies to gun purchases over $600? Even if it isn't, it is effectively "gold registration". Any why does the government want to know who owns gold? If it is, then it is gun registration. But don't worry, it's only for guns transactions over $600. They would never inflate the currency so much that almost all guns would cost over $600. That just wouldn't be nice. |
| Posted by: Anonymoose 2010-07-21 14:29 |
| #3 I supplement my income by selling paper collectibles, and this new law WILL affect me. In a bad way. I have no idea how I'm going to deal with these new rules. Sell at small local shows and accept only cash? A policy like this will have one major effect: Capital flight. And push much of this trade into the black and gray economy. |
| Posted by: Scooter McGruder 2010-07-21 14:05 |
| #2 You are a bad, bad, bad man Matthew. BTW, yoof is heading back to that school, for a Masters in Public Health. From Anchorage to NOLA, I fear he might break. :) |
| Posted by: Shipman 2010-07-21 13:44 |
| #1 Since this is the most transparent administration in history, I'm sure no one will mind if the bullion dealers make a public disclosure of all purchases by senior members of the administration since the inauguration and going forward (of course including trusts, Cayman Islands LLP's, etc.) I can't think of a more reliable indicator of the state of the economy than, for example, the TGBPI (Tim Geithner Bullion Purchase Index.) |
| Posted by: Matt 2010-07-21 13:34 |