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alloy2

Well-known member
Joined
Jan 27, 2015
Messages
56
Revenue Canada is doing another audit on me, they have requested copies of receipts for all monies I had received for the year 2014.

So I'm curious how many years a refinery has to keep records of customers and settlements paid out and if the patriot act would require a refinery to keep records from foreign customers for a longer period of time.

It's not like I made a fortune but would like to please my master by complying.

Thanks
 
I use https://www.waveapps.com/ and a separate bank account.
It is all automatic and quite easy.they can even retrieve back dated account information and cross reference it.
Made my life a lot easier.
I also do not pay out in cash only by direct bank transfer saves a lot of aggravation as authority's seem to think old fashioned "dell Boy " trading is all a little bit bent.
It patently is not and I know a lot who still deal on the edge of legality that way with out stepping over the line, but they want to see the workings clearly laid out.
In the U.K. failure to do so result's in a fine of 20% of your entire detectable turnover.
 
I would think this information should still be accessible. contact your account rep they should have that info. Also I try to get an emailed PDF of the settlement so I have it there.

On a side note.


I have a tax question for you US guys. 2015 I sold more PMs than other things this year. when doing my taxes how is this classified is it business income or is it short term capital gains. This was a business sale however I'm a sole proprietor. The difference is FICA tax and tax rate.

Just looking for info on what sole proprietors classifies this income as.

Eric
 
Curious how the IRS or Canada revenue would treat metals you choose to pool.

Say that a mining company decided to pool $5M worth of metals effectively removing it from the cash stream I suppose the tax people as well any share holders would have to wait until it was sold to become revenue.
 
alloy2 said:
Curious how the IRS or Canada revenue would treat metals you choose to pool.

Say that a mining company decided to pool $5M worth of metals effectively removing it from the cash stream I suppose the tax people as well any share holders would have to wait until it was sold to become revenue.

Not sure of the tax laws there but in the UK the gold would be accounted for as stock with a value that would be added to the profit and loss accounts and so taxable if a profit was made.
 
nickvc said:
alloy2 said:
Curious how the IRS or Canada revenue would treat metals you choose to pool.

Say that a mining company decided to pool $5M worth of metals effectively removing it from the cash stream I suppose the tax people as well any share holders would have to wait until it was sold to become revenue.

Not sure of the tax laws there but in the UK the gold would be accounted for as stock with a value that would be added to the profit and loss accounts and so taxable if a profit was made.
Is not accumulated stock much like equipment,It has benign tax implication's until you actually liquidate it.
I consider my silver stock more of a solvent than a commodity and would be VATable if traded in any quantity.
Au having no VAT implication's can be traded freely and held indefinitely,I have stock's of material that have not accumulated to the point of economic recovery,it would be very hard to account accurately that kind of content.
Pay tax or buy new kit before the end of the fiscal year.The system douse reward growth.
In fact you should be able to reclaim a further 20% of what you spend on equipment as all cost's associated with the production of investment gold is VAT free as well.
Only School's and religion is so well looked after,every ounce of Au recovered and put back into the economy help's the county as a hole.
 
Short term capital gains if held less than a year. The IRS classifies precious metals, including gold, as collectibles, like art and antiques. This applies to gold bullion coins and bars even though their value depends only on the metal content and not on rarity or artistic merit. You pay taxes on selling gold only if you make a profit at the time of sale. ETF's are treated the same way even though they are just paper.
 
etack said:
On a side note.

I have a tax question for you US guys. 2015 I sold more PMs than other things this year. when doing my taxes how is this classified is it business income or is it short term capital gains. This was a business sale however I'm a sole proprietor. The difference is FICA tax and tax rate.

Just looking for info on what sole proprietors classifies this income as.
Palladium said:
Short term capital gains if held less than a year. The IRS classifies precious metals, including gold, as collectibles, like art and antiques. This applies to gold bullion coins and bars even though their value depends only on the metal content and not on rarity or artistic merit. You pay taxes on selling gold only if you make a profit at the time of sale. ETF's are treated the same way even though they are just paper.
Personally (I am not a CPA nor do I play one on TV), I would classify it as a stock and capital gain only if I bought it as an investment. I do my books on a cash basis. If I am producing gold as part of my "manufacturing" process, then it's inventory until I sell it. The IRS allows you to value your inventory at the lower of market value or cost, so unless you can actually derive cost from the materials you have purchased, acid consumed, etc., I'd go with market value.
 
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