I am doing my federal tax form, and one of the TurboTax questions asks if I "own or control a foreign bank account... or financial asset?
Since, as of 2013, I own gold via GTU (Canada) and SGOL (Switzerland), do I need to answer "yes" to this question?
If the answer is "yes," what hell will they make me go through to comply with IRS reporting requirements?
Federal tax form for owning gold abroad?
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Re: Federal tax form for owning gold abroad?
IMO, answer "no".
I own some SGOL but I bought it through Fidelity just like any other fund and I don't remember seeing any warning about owning a foreign asset. Until I do a taxable trade, how would they even know?
(Having said that I kind of recall seeing something in the gold forum about a possible tax advantage when selling in regards to GTU if you file some forms - so you might want to check that out).
I own some SGOL but I bought it through Fidelity just like any other fund and I don't remember seeing any warning about owning a foreign asset. Until I do a taxable trade, how would they even know?
(Having said that I kind of recall seeing something in the gold forum about a possible tax advantage when selling in regards to GTU if you file some forms - so you might want to check that out).
Last edited by ns3 on Fri Mar 07, 2014 5:29 pm, edited 1 time in total.
Re: Federal tax form for owning gold abroad?
Might wanna invite your accountant buddy over for a steak and get him to research this for you.
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Re: Federal tax form for owning gold abroad?
GTU confuses my accountant.moda0306 wrote: Might wanna invite your accountant buddy over for a steak and get him to research this for you.
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Re: Federal tax form for owning gold abroad?
If you own GTU (I assume PHYS as well) in a taxable account you probably want to file form 8621 each year you own it. The last time I looked into this (several years ago) TurboTax could not generate this form, so to file a return with this form you had to file by mail (not electronically) and manually add this form to whatever TurboTax generated. The point of filing an 8621 is that it allows you to pay tax on the gains in GTU at the capital gains rates. Gains on gold coins (and my understanding is gold ETFs as well) are taxed at the collectibles rate. If you discuss this with your tax person and they don't know what you're talking about, insist that they look into it (or find another tax person).ns3 wrote: (Having said that I kind of recall seeing something in the gold forum about a possible tax advantage when selling in regards to GTU if you file some forms - so you might want to check that out).
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Re: Federal tax form for owning gold abroad?
As far as I know, that doesn't count as a foreign financial asset if it is in a US broker. If you get certificates for GTU and/or SGOL, then it probably does count. In that case you will probably have to file the FBAR (TD-1) Treasury form and the 8948(?) foreign account IRS form, if it is any significant amount.goodasgold wrote: I am doing my federal tax form, and one of the TurboTax questions asks if I "own or control a foreign bank account... or financial asset?
Since, as of 2013, I own gold via GTU (Canada) and SGOL (Switzerland), do I need to answer "yes" to this question?
If the answer is "yes," what hell will they make me go through to comply with IRS reporting requirements?
In either case, you definitely want to file form 8621 for GTU if this is in a taxable account, so you can get normal capital gains treatment rather than the "collectibles" rate. I don't know about the treatment of SGOL.
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Re: Federal tax form for owning gold abroad?
As to the question asked, I can't comment as I have no particular competency. But I will make a quick observation. While there is nothing wrong with canvassing the forum on this or any other topic, when the subject is taxes or a similar one that can have serious legal implications, my recommendation is to seek advice from a CPA or a tax lawyer. If they accidentally give you bad advice, that might garner some sympathy from the IRS in the event of a dispute. Telling them however, that your internet buddies at Crawlingroad said not to worry about it, is less likely to impress.
If you don't want to monkey around with lawyers and CPAs though, my advice is just fill out the forms. Bottom line, when dealing with the IRS and unsure of the correct course of action, I always err on the side that is least likely to cost me a large amount of money in the form of fines, and or land me in jail.
If you don't want to monkey around with lawyers and CPAs though, my advice is just fill out the forms. Bottom line, when dealing with the IRS and unsure of the correct course of action, I always err on the side that is least likely to cost me a large amount of money in the form of fines, and or land me in jail.
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Re: Federal tax form for owning gold abroad?
I agree, with the proviso that it isn't always easy to determine how one should fill out the form.Ad Orientem wrote: As to the question asked, I can't comment as I have no particular competency. But I will make a quick observation. While there is nothing wrong with canvassing the forum on this or any other topic, when the subject is taxes or a similar one that can have serious legal implications, my recommendation is to seek advice from a CPA or a tax lawyer. If they accidentally give you bad advice, that might garner some sympathy from the IRS in the event of a dispute. Telling them however, that your internet buddies at Crawlingroad said not to worry about it, is less likely to impress.
If you don't want to monkey around with lawyers and CPAs though, my advice is just fill out the forms. Bottom line, when dealing with the IRS and unsure of the correct course of action, I always err on the side that is least likely to cost me a large amount of money in the form of fines, and or land me in jail.