Skip to comments.Gold Coin Sellers Angered by New Tax Law
Posted on 07/21/2010 8:25:54 AM PDT by DFG
Those already outraged by the president's health care legislation now have a new bone of contention -- a scarcely noticed tack-on provision to the law that puts gold coin buyers and sellers under closer government scrutiny.
The issue is rising to the fore just as gold coin dealers are attracting attention over sales tactics.
Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of Form 1099. Currently, 1099 forms are used to track and report the miscellaneous income associated with services rendered by independent contractors or self-employed individuals.
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Ping for later
I’ve got to pee real bad but the department of urination enforcement hasn’t sent the forms back to me so I can fill them out in triplicate and allow 4 to 6 weeks for processing.
The U.S, Government has a particularly sordid record with regard to private ownership of gold - right down there with the worst socialist regimes!
Alla FDR? Funny, socialists hate all forms of portable and non-reportable wealth. All your money belongs to us.
Six hundred bucks?
What’s the average apartment rent these days?
Man, what a cluster-fudge!!
“Ive got to pee real bad”
If your pee’s worth more than $600 and you’ve “transferred ownership” I believe PPACA requires you to file a 1099 form.
I guess this law doesn’t affect illegal aliens. Just make up a SSN and tell them your name is Gomez. What are they gonna do, charge you out of state tuition or something?
This is the answer to all the people who yap about confiscation. The government doesn’t want your gold, just your life.
In the movie “Ben Hur”, Roman Admiral Quintas Arius tells those chained to their oars, “Row well, you live to serve this ship.”
In 2010, the US Government says to those chained to their jobs, “Earn well and pay your taxes. You live to serve the STATE.”
It’s called PROGRESS.
I understand that slavery at it’s peak only required 38% of a person’s life. I think with the current tax structure we may have exceeded that.
I was thinking the same thing.
The key is you will be taxed on your gold each year, until eventually it makes no sense to own it. Further proof Obama is trying to ruin the country.
“We have to pass the Health Care Bill to see what is in it”
Merry Christmas in July!
Optimists buy gold. Pessimists buy brass and lead.
$1.7B per year in new taxes to the government is what they expect. At what cost in extra time and accounting to the taxpayers? According to the Obama, who gives a 'rats ass.
Buy bullion, not coins.
Bullion has less markup, and you can buy it by the gram if you like.
Next you’ll start seeing “$500 Yard Sales”. The sale lasts until they’ve sold $500 dollars worth of stuff.
I earn $1200.
The government takes half that.
Leaving me with $600.
I buy some gold for $600.
It goes up, it goes down.
I sell the gold for $600.
I submit my 1099s form.
The government takes half that.
Leaving me with $300.
The government got $900 out of the deal.
What other hidden and little noticed provisions are in the “healthcare” law? How many things are in there that the democrats knew about but “didn’t read?”
This is change without the hope.
Great. The government collects $1.7B a year in extra tax revenue by imposing compliance costs vastly in excess of this. There’s 6 million firms in the U.S. http://www.sba.gov/advo/research/data_uspdf.xls
Pretend each one only has 2 $600 transactions per month for which a 1099 has to be filed. That’s 144M forms. Now assume that between filing forms and IRS processing them it costs $10 per form. That’s $1.4B. If the average is 4 forms per month (1 per week), it’s $2.8B etc. I don’t know the true average, but have heard estimates that the total annual number of forms nationwide will be in the billions.
This is another classic case of Mickey Mouse accounting in the health reform bill. Health reform gets credited with $1.7B in savings, but all the compliance costs imposed on taxpayers and IRS are “hidden costs” not accounted for. From a social point of view, this new rule clearly is cost-ineffective, but Congress dumped it in the bill in its desperation to make it appear as if the true cost of the bill would be below $1T.
This 1099 issue will swamp the govt computers make every tax return an error and will increase the volume of grey/black market. If you already own gold..then why sell it via a dealer with a 1099..when you can sell it to a private buyer for cash? I recommend that everyone should start hording some cash that will be also more valuable in a cash market. If you can buy a service for cash for less if no reports are issue..why use a check or credit card?
If you can get paid more (net) in cash than reported income..why report? The higher the taxes and reporting requirements the blacker our economy will get. We will all take up the tricks of the illegals and drug dealers.
......The key is you will be taxed on your gold each year.....
I would argue that the point is to establish a document that is the basis for the transaction. Future gains and losses will be based on the 1099 issued at the time of the sale.
Pretty much all financial instruments have some formal document to establish a basis
Quick route to a thugocracy:
(1) Criminalize common acts
(2) Make compliance infeasible
(3) Arrest whomever you want based on political reasons.
See also fascism, national socialism, marxism, and all other forms of totalitarianism.
No “may” about it - we are slaves.
Nope, not copper. That’s a useful industrial metal with some worth, which is why pennies aren’t copper any more.
Slag steel. Maybe. But I’m expecting plastic coins soon...
OK, I’ll buy some more poker chips then....LOL
Mine is pure Chanel No. 5
Those who have the normal ups and downs of life buy both.
“Optimists buy gold. Pessimists buy brass and lead.”
Hence I am correctly named. :)
The longer it takes, the more we are at risk of never being able to recover our country or possibly even civil existence.
Everyone concerned can start by making preparations to become self-reliant, DIY, and support local markets and independent Internet businesses.
We're not dependent on the big government or big corporations. Their existence depends upon us. That dependency has grown to a significant and unsustainable portion of our life's work.
Cloward-Piven works both ways and in the end, anyone dependent upon the government will be at a disadvantage. It's our best strategy IMO.
Agreed, see tagline.
99+% of the harm will be done to small businesses that have never heard of coins.
Never again will I fall for their propaganda or allow them to take even one second of my remaining time on earth without a fight.
Life and freedom to live it your way is too precious, too short and too wonderful to die a slave.
Couldn’t this make silver more popular as a backlash?
So...guilty until proven innocent?
I think that's carved above the door to the IRS, right below "Abandon all hope ye who enter here".
Re last post...
Seriously, if I hold a garage sale and sell $700 in stuff, I have to file the 1099s form and pay confiscatory taxes unless I can produce receipts for the stuff showing I had a loss? Like I’m going to have receipts for books, camping gear, dishes, etc. I’ve had for a couple decades?
They’re drawing a line in the sand where I cannot avoid stepping over it, but somehow it will be my fault...
I don't know what the exact rules are on garage sales, but if you are making a profit (such as making artsy-craftsy stuff and selling it from more than the cost of goods) then you are supposed to report and pay taxes on the profit. If you are selling off old junk for a loss (like most garage sales) then you don't have to report the income. Sorry, I can't quote the exact tax form and if you get arrested for using my advice, please tell me so I can send you a file in a cake.
Way to go! Not all of us have the ability to do this. I am self-employed, my wife had a reg job. When I saw that Obama was doing what we all feared, I had her retire and I went into semi-retirement. We have cut our taxable income by around 70%. We will not pay much in fed taxes going forward. We were already headed this way, but moved everything forward a few years. Best decision evah.
Sold the city house, moved to the country. The libs can pay for Obama’s utopia.
Where in the Constitution is it written that the Feds can tax the same earnings an indefinite number of times?
Far as I can tell, folks can ony buy gold with after tax money."
For the record, I don't own gold.