Gold buying, tax?
I've purchased a bit of gold/silver bullion (looks like coins).
It occurred to me that it could have the advantage of a kind of tax free investment... but is it illegal?
I buy an Oz of gold for 950. It goes up to 1,200.
A neighbor says he'll cut down a couple of my trees for $1,200.
He accepts the gold coin at it's current value of 1,200.
Would this technically be something I need to report? Who would know?
We buy ROTHs/IRA's because we don't pay taxes on the investments as the grow (if they grow).
So let's say you think precious metal is a great investment and that's where you invest...but not in an IRA... you just buy it and put it in the closet.
The stuff goes up in value with each passing year. Who's gonna ask you to pay taxes on it? It seems to me that it has this odd way of acting like an IRA in that sense.
Is anyone ever, at any time at all, going to say, "hey dude, we know you bought that metal... what ever happened to it?".
What if I just give one of the coins to a nephew? Do I have to inform somebody?
I have yet to find an answer on this matter.