Why Buy U.S. Gold Eagles?
Recently, a reader contacted me about a recommendation I made in Austrian Money Secrets. In my book, I recommended purchasing U.S. gold eagles, rather than other gold bullion coins. I stated that for U.S. persons, unlike other forms of gold, eagles are eligible for the reduced 15% tax rate on capital gains. However, that's only true if you're in the 15% tax bracket (e.g., married filing jointly with an adjusted gross income under US$63,700). Gold eagles along with all other forms of gold bullion are considered "collectibles." If you've held them for over one year, your gains are taxed at your marginal tax bracket. For collectibles, the maximum rate is 28%, not 35%. However, if you're concerned about the government confiscating gold (as FDR did back in 1933) you may want to purchase gold eagles instead of some other form of gold. The 1985 legislation that authorized producing the coins, now known as gold and silver Eagles, stipulates that these coins are to be considered "numismatic items." They're not specifically exempted from any future government confiscation of gold. However, the terms of the emergency order President Franklin D. Roosevelt issued in 1933 that forced owners of privately owned gold to sell their holdings to the government specifically exempted "gold coins having recognized special value to collectors of rare and unusual coins." I don't think another gold confiscation is particularly likely, mainly because the takings would be pretty slim. If the federal government gets desperate enough to begin confiscating property under some emergency decree, it would likely start with assets that are easy to identify and with a much greater value. That includes real estate, stocks, pension funds, etc. However, if you do believe a confiscation could happen, then you should consider you purchasing the only coins specifically defined in U.S. law as "numismatic."
Recently, a reader contacted me about a recommendation I made in Austrian Money Secrets. In my book, I recommended purchasing U.S. gold eagles, rather than other gold bullion coins. I stated that for U.S. persons, unlike other forms of gold, eagles are eligible for the reduced 15% tax rate on capital gains. However, that's only true if you're in the 15% tax bracket (e.g., married filing jointly with an adjusted gross income under US$63,700). Gold eagles along with all other forms of gold bullion are considered "collectibles." If you've held them for over one year, your gains are taxed at your marginal tax bracket. For collectibles, the maximum rate is 28%, not 35%. However, if you're concerned about the government confiscating gold (as FDR did back in 1933) you may want to purchase gold eagles instead of some other form of gold. The 1985 legislation that authorized producing the coins, now known as gold and silver Eagles, stipulates that these coins are to be considered "numismatic items." They're not specifically exempted from any future government confiscation of gold. However, the terms of the emergency order President Franklin D. Roosevelt issued in 1933 that forced owners of privately owned gold to sell their holdings to the government specifically exempted "gold coins having recognized special value to collectors of rare and unusual coins." I don't think another gold confiscation is particularly likely, mainly because the takings would be pretty slim. If the federal government gets desperate enough to begin confiscating property under some emergency decree, it would likely start with assets that are easy to identify and with a much greater value. That includes real estate, stocks, pension funds, etc. However, if you do believe a confiscation could happen, then you should consider you purchasing the only coins specifically defined in U.S. law as "numismatic."
No comments:
Post a Comment