Hi everyone, first time posting here.
I have a question regarding selling a large amount of silver (and some gold) to purchase a house, l live in Canada and l am not really sure of the in's and out's of selling large amounts of PMs and how it will relate to being taxed.
l have been selling some to live on for over a year now and doing so without much thought as to having to declare it to the government, usually an ounce of gold every month or so, l have sold to 3 different places and only one of them issued receipts automatically so l was happy to take cash at the other 2. Now as the price of silver starts to rebound from the last correction l would like to buy a small acreage to live on, currently l've been renting and house sitting for a couple of years waiting for the price of PM's to rise but feel its time to dig in and prepare for hard economical times and possible SHTF scenario ahead.
The only tax saving measure l've been able to come up with so far is to maybe sell half in December and sell the other half in January putting the gross amount into 2 tax years.
If anyone else has any ideas or knows what kind of taxes l would be looking at l would appreciate any input, thanks
I can tell you that in the USA you will owe higher taxes on selling gold and silver than on selling stocks. Stocks are covered by the Capital Gains tax rate, generally 15%, on stocks held more than one year. Gold and silver coins, however, are considered "collectibles" (not investments) by the US taxing authority and are thus subject to personal income tax rates; up to 28% for items held more than a year and up to 35% in some cases if you sell the item within 12 months of purchase. Additionally in the US it is difficult to avoid your transactions being reported to the IRS even if it is a cash transaction.
Not sure if you are aware, but you might be buying at the top of Canada's Real Estate bubble. While the USA's has popped (and is still deflating) Canada's is still being blown up. I bought a house in the states right after the bubble burst, and still lost 10% later when I sold it. Nothing is wrong with renting.
The time to buy is not when everyone else is in that investment class (AKA a bubble). The time to buy is when everyone you know is telling you that "they are never going to buy a house ever again". That is the bottom. Go around and ask people if they own gold or if they own a house. I bet you that you will get 1/100 with people on gold/homes.
Also, if you are renting, and you need to get out of town, because the SHTF, you just grab your gold and go. You don't need to live through hell if it comes to your neighborhood.