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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15437
Experience:  15years with H & R Block. Divisional leader, Instructor
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Hello - Question regarding transfer of ownership of gold/silver

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Hello - Question regarding transfer of ownership of gold/silver bullion -
A friend asked me to buy 5oz .9999 gold bullion and 100oz .9999 silver bullion on his behalf recently when the prices of these commodities fell. He asked if I would be able to do this for him, as he was waiting to receive funds, but wanted to take advantage of the lower purchase price.

I did make the purchases. He wire transferred the funds, in full, to my checking account within 48hrs of the purchase as promised. I had these items shipped to my residence, but have not yet received them.

Am I able to just hand these items over when I receive them, since I have been paid for the purchase? Will I need to obtain some sort of transfer document/receipt showing I gave these items to my friend? I'm trying to understand my tax liability for this situation. I don't plan on offering this kind of assistance again.


Robin D :

Hello and thank you for using Just Answer,
Your being the middleman for the transaction would not be a taxable event as long as you are not in the business of buying and selling. It would be advisable fo ryou to retain documentation of this arrangement, just in case you were ever contacted by treasury and asked questions.


That's good news. What sort of documentation should I obtain? Make him sign a statement indicating the transfer of the bullion?

Robin D :

A statemment would be fine as long as it simply states the exact nature of the transaction and references the dates.


Ok - sounds good. Thank you.

Robin D :

Your positive rating is always thanks enough.

Robin D. and 2 other Tax Specialists are ready to help you

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