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I Invested 50,000 dollars to buy gold bullion in Europe . I

 

Customer Question

I Invested 50,000 dollars to buy gold bullion in Europe . I buy and sell from a Holding bank associated with my storage Vault . My investment is now worth 85,000 . I want to sell 40,000 Dollars worth of Gold, Thats 10,000 Dollars Less then my original investment and send it to my checking account in the USA I will be leaving the remainng 45,000 in Gold Bullion and selling it at a future date. .Do I have to pay Capital Gains on the 40,000. My Tax returns include my Gold Investment.

 



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Submitted: 361 days and 9 hours ago.
Category: Capital Gains and Losses
Value: $30
Status: CLOSED

Accepted Answer

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Expert:  Randalltax replied 361 days and 9 hours ago.


Randalltax :

If you sell your gold, you will have a capital gain. You do not measure the gain against your total investment unless you sold out of the entire position.

Randalltax :

If you bought X gold for $50K but you sold 55% of X, then your cost basis is 55% of the 50K. This is what you use to determine the gain on the 40K sale.

Randalltax :

Gold is taxed at the 28% rate and not as long term capital gains.

Randalltax :

In addition to filing a tax return, you will have to file FBAR statement since you are over the threshold.

Expert TypeEnrolled Agent
Category: Capital Gains and Losses
Pos. Feedback: 95.5 %
Accepts: 194
Answered: 4/16/2012

Experience: Over 20 Years experience in resolving tough tax cases

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