I’m not aware of a legal basis for the judge to day this.
They had possession of their IRA assets which makes it a taxable withdrawal.
It amounts to who controls poseession of the gold. LLC, or living, breathing tax-owing human?
The law referred to doesn’t forbid storing gold at home, in a safe or otherwise.
Taxpayer said the gold is not under her personal control, (on paper it is property of LLC), so moving funds from IRA into gold, then to gold-holding LLC is not a taxable event.
Judge held this movement of assets to be a taxable event.
The legal basis is quite simple.
The IRA is a regulated government vehicle to put off taxes for retirement.
For tax purposes, this vehicle has to be heavily regulated and monitored.
Can’t monitor what is in your safe.
It was a bona fide withdrawal, subject to penalty and tax if you are under 59.5 years old.
I am going to purchase a new vehicle (taking delivery this month).
I need to make a withdrawal from my IRA to pay for it.
Since I need it for retirement I should not have to pay taxes on my withdrawal, correct?
Nope, I will have to pay taxes at the current rate for my withdrawal to purchase this vehicle.
They took a withdrawal and bought gold.
They owe the tax
The Wall Street / the investment industry must ALWAYS get its cut. The government gives advantages to you, but only through 3rd parties, because they act as police for the Government.
Like “Qualified Immunity” judges are just inventing laws out of thin air.