On 02/28/2008, sixteen St. Gaudens coins were purchased for $49,969.
On 01/12/2011, those same coins were sold for $32,039 (a loss of $17,930).
In the next few days, I want to close out and get delivery of a precious metals IRA that has 79 Gold Eagles purchased in 10/17/2008 at a cost basis of $66,964. The current "coin" value is about $1577 x 79 = $124,583. The current "bullion" value is about $1429 x 79 = $112,891.
QUESTION #1: For tax
purposes, is it true that -- even though these are Gold Eagles -- the valuation is based on the raw price of gold bullion at the time of distribution
? In this example, the capital gain
on the IRA account would be $112,891 - $66,964 = $45,926.65.
QUESTION #2: For 2011 tax purposes, can I subtract the entire loss of $17,930 from the gain of $45,926 and thereby pay taxes on $27,996? (It is true that some other miscellaneous income
items affect the tax bracket, but generally it looks like about 25%).