Owning a 1,000 Ounce Silver Bar

Hey,

I once read that, if you buy a 1,000 ounce silver bar, you must report
it to the IRS. But now, I found a site that says, you only have to
report to the IRS if you sell your 1,000 ounce silver bar, not when/if
you buy it. Here's the site that says you do not have to report when
you buy, and only when you sell:

http://www.usagold.com/cpm/privacy.html

Its close to the top, the small paragraph just before the chart of the
reportable bullion items. So, is this information correct? Can I buy a
1,000 ounce silver bar without reporting it to the IRS? Just curious.

Tom

wrote:

I once read that, if you buy a 1,000 ounce silver bar, you must report
it to the IRS. But now, I found a site that says, you only have to
report to the IRS if you sell your 1,000 ounce silver bar, not when/if
you buy it. Here's the site that says you do not have to report when
you buy, and only when you sell:

http://www.usagold.com/cpm/privacy.html

I think the confusion arises with the word "you;" it depends on
which side of the transaction you are on. But check with an
accountant or attorney to be certain.

The reporting requirement I _think_ you are referring to is
for sales of precious metals which can satisfy a traded
commodities contract. The CBOT has a mini-sized silver
contract for 1000 oz, so a 1000 oz silver bar would qualify.

However, the reporting requirement applies primarily to brokers
and barter exchanges. When _they_ buy, (ie you sell) such a
bar, they will file a Form 1099 with the IRS to record the sale
amount to you. This lets the IRS know about the sale, so they
can expect you to report any income or loss.

http://www.irs.gov/pub/irs-pdf/f1099b.pdf
http://www.irs.gov/pub/irs-pdf/i1099b.pdf

Whether or not the seller issues a 1099, you are required to
declare any income. No shock there.

If you pay cash for the bar (at current prices), the seller
also has to file a different form, so the IRS can get you
coming and going:

http://www.irs.gov/pub/irs-pdf/f8300.pdf

--
Michael Benveniste -- (Clarification required)
Legalize Updoc.

wrote in message
...

Hey,

I once read that, if you buy a 1,000 ounce silver bar, you must report
it to the IRS. But now, I found a site that says, you only have to
report to the IRS if you sell your 1,000 ounce silver bar, not when/if
you buy it. Here's the site that says you do not have to report when
you buy, and only when you sell:

http://www.usagold.com/cpm/privacy.html

Its close to the top, the small paragraph just before the chart of the
reportable bullion items. So, is this information correct? Can I buy a
1,000 ounce silver bar without reporting it to the IRS? Just curious.

Tom


Hello

If you have adobe reader loaded on your PC and
your filing as and individual, go to the link
shown below.

http://www.irs.gov/pub/irs-pdf/p17.pdf

You want to go to Chapter 14, page 101.

Investment Property --

Gold, silver, stamps, coins, gems, ect.

These are capital assets except when they
are held for sale by a dealer. Any gain
or loss you have from their sale or trade
generally is a capital gain or loss.

...

On Feb 1, 6:24*am, "Michael Benveniste" wrote:
wrote:
I once read that, if you buy a 1,000 ounce silver bar, you must report
it to the IRS. But now, I found a site that says, you only have to
report to the IRS if you sell your 1,000 ounce silver bar, not when/if
you buy it. Here's the site that says you do not have to report when
you buy, and only when you sell:

http://www.usagold.com/cpm/privacy.html

I think the confusion arises with the word "you;" it depends on
which side of the transaction you are on. *But check with an
accountant or attorney to be certain.

The reporting requirement I _think_ you are referring to is
for sales of precious metals which can satisfy a traded
commodities contract. *The CBOT has a mini-sized silver
contract for 1000 oz, so a 1000 oz silver bar would qualify.

However, the reporting requirement applies primarily to brokers
and barter exchanges. *When _they_ buy, (ie you sell) such a
bar, they will file a Form 1099 with the IRS to record the sale
amount to you. *This lets the IRS know about the sale, so they
can expect you to report any income or loss.

http://www.irs.gov/pub/irs-pdf/f1099...pdf/i1099b.pdf

Whether or not the seller issues a 1099, you are required to
declare any income. *No shock there.

If you pay cash for the bar (at current prices), the seller
also has to file a different form, so the IRS can get you
coming and going:

http://www.irs.gov/pub/irs-pdf/f8300.pdf

--
Michael Benveniste -- (Clarification required)
Legalize Updoc.

It might also have something to do with what the IRS would assume to
be a $10,000+ transaction for a collectable, which also includes
precious metals.

http://www.yale.edu/tax/docs/rules_def_8300.pdf

I once read that, if you buy a 1,000 ounce silver bar, you must report
it to the IRS. But now, I found a site that says, you only have to
report to the IRS if you sell your 1,000 ounce silver bar, not when/if
you buy it. Here's the site that says you do not have to report when
you buy, and only when you sell:
Its close to the top, the small paragraph just before the chart of the
reportable bullion items. So, is this information correct? Can I buy a
1,000 ounce silver bar without reporting it to the IRS? Just curious.
Tom

Cash transactions of $10,000 or more are reported to the federal government.
But see all transactions are cash transactions...in other words it's
monetary transactions that are reported.

Cash transactions of $10,000 or more are reported to the federal
government.
But see all transactions are cash transactions...in other words it's
monetary transactions that are reported.

Oh...personal checks are not cash. But money orders under $10,000 are
cash...but then what are money orders over $10,000 ?

http://www.irs.gov/businesses/small/...148821,00.html