Crow_Hunter
Well-Known Member
Most likely you did what others do and you didn't file a Schedule D and report the original cost basis and pay the appropriate 28% collectibles tax on the earnings. You bought gold at $400/oz and sold it during big run up for $1,500/oz for cash at local gold shops and didn't report the cost basis or the sale. If you keep the sales low enough, you don't trigger the dealers to send in the appropriate 1099-B. It is even easier with Silver hence your plan to change over to Silver over time.
You cheated the government, your neighbors and all those on this site out of $280+/oz that you should have paid in taxes being that you worked for the phone company for 33 years, you were likely bringing in enough that you undoubtedly did "very well for yourself and your family". I come from a CWA family. My Dad and Mom both so I know how much you were bringing in.
For your sake, I hope the IRS doesn't get wind of it because you will get creamed if they do.
But you shouldn't throw stones in your glass house.
You cheated the government, your neighbors and all those on this site out of $280+/oz that you should have paid in taxes being that you worked for the phone company for 33 years, you were likely bringing in enough that you undoubtedly did "very well for yourself and your family". I come from a CWA family. My Dad and Mom both so I know how much you were bringing in.
For your sake, I hope the IRS doesn't get wind of it because you will get creamed if they do.
But you shouldn't throw stones in your glass house.
rocmar
Where Eagles & Angels....Dare to Fly...
Lifetime Member
Again...I have my taxes done.
so.....how you get I haven't paid
my fare share...
Don't know....how you conceive
that..
rocmar
Where Eagles & Angels....Dare to Fly...
Lifetime Member
Mom& dad......CWA....
& they shared people's
Taxes & financial business
With you....
Crow_Hunter
Well-Known Member
Hunh?
CWA, Communications Workers of America. My parents both retired for the phone company and my brother worked form them for several years before they laid him off. Not CPA...
When you have your "taxes done", do you give the the receipts showing them the price you paid for the gold/silver (your basis) that you sell so that they file the correct taxes? If you don't, and most people don't, because unlike stocks/bonds when you sell precious metals/collectibles for cash, the reporting structure isn't robust, you are cheating the government and the people of the US out of their taxes due. If you "did very well for yourself and your family" and you didn't use the correct cost basis to report your earnings, then you are cheating on your taxes.
You most likely sold it a little bit at a time for cash when the price was higher than what you paid for it and pocketed the cash and went about your business and didn't even report it on your taxes at all much less used the correct form and paid the higher 28% collectible tax rate.
You don't have to believe me about anything else that I have said. But the tax rules are for anyone to read. I do taxes and help others with taxes for fun and as another community give back. I know when people buy something at X and sell it for X+$1000, they DON'T report it to the IRS. They smile and pocket the money.
I don't know that you don't follow the rules and report it correctly but if you do, it would the be first "gold bug" in my experience that does. Heck, on "gold bug" websites this illegal "feature" of bullion is touted and most people don't understand the tax code well enough to know that it is illegal.
Since I get a big kick out of correcting the IRS and making them pay me interest, I do lots of research on the tax code.
By the way, you should probably talk to your accountant and see if you can get this corrected. The IRS will still charge you the taxes and interest on the unpaid balance but they will usually waive the penalty if you come clean on your own rather than getting caught with your hand in the cookie jar.
Too bad you mentioned you were in gold and silver and "did very well for yourself and family" earlier in this conversation. Usually high levels of collectible income is a trigger for a tax audit so I am sure that a mention of it on a public board is probably a good indicator for them as well. Hopefully you are using a spoofed IP address rather than connecting directing to your ISP. If you aren't, it would be fairly easy for the IRS to figure out who you really are and see if you have been reporting your taxes truthfully. There is a very good chance that the government is going to need to much larger income stream in the near future if Hillary wins and getting tax cheats is a great way to both improve government inflows AND everyone likes it when "privileged" rich people get their due when cheating on their taxes and taking advantage of the system.
What I am doing is mirroring your comments about everyone else...
Just as I don't know you, you don't know anyone else here and your comments about their character, "white privilege", etc are just as off base as my comments calling you a tax cheat.
rocmar
Where Eagles & Angels....Dare to Fly...
Lifetime Member
I have not a thing too worry about....
.....I have met a guy from this sight
....so slow your roll...you been wrong
more than right...
GET BACK ON THE COUCH....
advertisement
J
JTW
Guest
Damn.. And here I thought you were just a dumb crow hunter!
Montecresto
Montecresto el segundo
Lifetime Member
Supporting Member
Club Contributor
That's a fair point, but I wouldn't waste your time with it. What method of saving and retirement plan do you practice?
Crow_Hunter
Well-Known Member
I follow Taylor Larimore's 3-Fund portfolio:
Three-fund portfolio - Bogleheads
https://www.bogleheads.org/wiki/Three-fund_portfolio
Although at one time I did have 200 ac of timberland as well that I have divested myself of.
Paid for rent paying properties are a very good investment if you have the time and want to fool with renters. My parents tried it one time when I was in college, it burned me bad enough I wouldn't be willing to do it now.
I disagree with your statement that real estate is "safe" it is no more safe than the stock market/bond market but it can be a good investment.
The biggest problem with real estate is the lack of liquidity and the fact that you are tied to a local market. Big employer closes and moves overseas or the government decides to put a prison next door and suddenly your value goes to nothing and you can't find good renters. That can be as much or more risk than having your money in the stock market. Especially if you live and work in the same area. Suddenly your house, your job and your properties can have the rug jerked out from under them and there isn't much you can do.
If you know your market, have a backup plan and don't overextend yourself by borrowing too much you can make mint in real estate.
Montecresto
Montecresto el segundo
Lifetime Member
Supporting Member
Club Contributor
Well, I could have been more specific. In this thread I've already expressed my disinterest in rental property. Though people can and do make money at it. Putting up with renters and the perennial repairs that must be made to property is a huge turn off to me. My property investments are in rural areas and mostly just land. I owner finance with nothing down and 10% interest with restrictions on what can be done with the property before its paid for, except improvements, in which case, knock yourself out. Realestate is far safer than the stock market, but the stock market can make sharper gains than realestate typically will. Land is the slow steady climber. And the risk of your land being devalued by a prison going in or some other untoward infrastructure is minuscule, particularly in rural and or mountain land. I agree with you that realestate isn't liquid, which is the point, and what makes it ideal for future retirement needs.
trigger
Old Ironsides
Vendor
Lifetime Member
Supporting Member
Damn, just stumbled on to this thread and seems like everyone's making friends.
As to the original topic, I didn't save squat until I made enough to do so. Making bad choices at a young age will hinder your retirement fund. I think you need to struggle financially at some point to make you appreciate stability. As a carpenter, I was laid off many times and lived on potato's and the heat set at 60. Teaches you not to piss it away when times are good.
As for privileged, like most I think, I worked my ass off to get what I have, which is financial stability. I've always said, dig deep enough into anyone's past and we are all straight out the trailer. Somewhere along the line you get a break or two and it's up to the individual to seize it or squander it away.
As to the original topic, I didn't save squat until I made enough to do so. Making bad choices at a young age will hinder your retirement fund. I think you need to struggle financially at some point to make you appreciate stability. As a carpenter, I was laid off many times and lived on potato's and the heat set at 60. Teaches you not to piss it away when times are good.
As for privileged, like most I think, I worked my ass off to get what I have, which is financial stability. I've always said, dig deep enough into anyone's past and we are all straight out the trailer. Somewhere along the line you get a break or two and it's up to the individual to seize it or squander it away.
Montecresto
Montecresto el segundo
Lifetime Member
Supporting Member
Club Contributor
Yep, I was raised in a poor family of 9 kids and wasn't taught s*** about saving for anything, let alone retirement. Had to learn the hard way. Glad you've got yours behind you now too buddy.
Saving what's that? Lol no I went in the Marine Corps at 18 and started with 10% and been that way with my job outside the Marine Corps. Only way to get ahead in life is you. Everyone wants a handout, but if you really want to make your mark in life it is all about what you put in it. Me I want to retire one day. I know it will not be tomorrow because I have a 4 year old and a 3 year old and another due in a month, but I want them to live good and have nice things. I do not expect social security to be around by the time I reach age to retire, so me I am looking after my family and myself by taking 10% before taxes and put in a 401k that is matched to 6%. I also try to put 3% in 2 other accounts for my daughter's college fund and also an emergency fund. That is me and that is how I love. I can't say it's right, but it is working for me.
trigger
Old Ironsides
Vendor
Lifetime Member
Supporting Member
17 yrs old, high school drop out, pregnant g/f, alcoholic parents and living in the backwoods of a two bit northern MI town. Perfect formula for white trash forever. No silver spoon here. Now I hold a position in an industry that most have a five year degree to achieve. I tell my boys to pay attention and work hard even when no one's looking. It won't go unnoticed.
I put 5% into 401k, have for years. 2008 took its toll though. Everything is paid for except the house and even that isn't much. Bought a house that should've been condemned in a nice area with land. It's worth three times as much as I paid for it in thirteen years. Acquired everything the hard way.
ehart814
Well-Known Member
Lifetime Member
Club Contributor
Commercial rentals. Rent to businesses - not deadbeat losers that play the system. That's way better but you have to have the cash to build or remodel as they need.
Sent from my iPhone using Tapatalk
J
JTW
Guest
advertisement
