Some gold bullion bars and coins are reportable and subject to confiscation by the federal government. You may ask what does reportable mean? When a customer sells a bullion coin or bar that is reportable, the dealer who is buying the item has to fill out a 1099-B form and submit one copy to the IRS and the other to the customer at the end of the year. This involves the customer giving the dealer their Social Security number and a copy of their driver’s license. So, this process works like interest, profit, and dividends you may receive from many of your other investments and bank accounts. By law you always have to report your gain or loss on your taxes, when selling rare coins and precious metals. Please talk to a tax professional to make this more specific to your situation.
Rare coins can be a good investment and are always exempt from being reportable and subject to confiscation. If the bullion coin or bar is exempt from reportability or non reportable you will not have to give your Social Security number and driver’s license to the dealer. The dealer does not have to fill out a 1099-B form and what you do on your tax returns is private. This is between you and maybe a tax professional only. This is where an experienced dealer like Paul Albarian with over 22 years of experience can help you in making the right kind of gold investments to meet your goals.
Confiscation of gold involved an Executive Order by President Franklin D. Roosevelt in 1933. A Paraphrased copy of this law is on my website at www.albariancoins.com. There was an emergency in our banking system. Many banks went bankrupt, and FDIC was not around at the time to compensate customers for losing their life savings in bank accounts. The Great Depression had effect people’s lives and money around the world. The president ordered everyone in the United States to turn in their gold within 30 days at face value or they would incur a maximum punishment of ten years in prison and a $10,000 dollar fine. Rare coins were exempt. Remember my last blog? The definition of a rare coin is a coin dated before 1965 with a value greater than their metal value. The purpose of it being minted was for the consumer to buy their food, goods, and services.
Another Executive Order effective from 1974 to the present allows, citizens of the United States, to trade or invest in any and all bullion and collectible gold coins without penalty. Many people today believe this Executive Order of 1933, could take effect again if there was an emergency in our banking or other financial system. If this concerns you, please ask us how we can protect your privacy and the possibility of federal government confiscation of gold and other precious metals in the future.
What types of investments are considered reportable? Before making an investment, do your research. We at Paul Albarian & Associates will be glad to provide further guidance, and help you
Put together a rare coin and precious metal portfolio that you should be able to hold, buy, and sell privately and should not be subject to confiscation by our federal government.
Are you concerned about the effects the government and banks could have on your current and future savings and investments? Many financial advisors recommend their clients invest 5% to 15% of their investment portfolio in rare coins, and precious metals as a hedge against the weakening of the United States Dollar, inflation, and world instability. Please call Paul Albarian today at (818) 827-7152 to set up an appointment and get free information.