storing assets so they don't show up on income tax forms

[Luck_Club]

Quick question maybe...

i know that if you buy savings bonds, they only show up on your income tax when you cash them in. What other investments could you store assets in that don't create paper trails for tax forms until they are sold?

 

[97guns]

Gold, even when you go to sell you don't need to report

 

[REWahoo]

Don't forget about guns 'n ammo...

 

[Blue Collar Guy]

i second the precious metals, paintings(art work), vintage cars,

 

[Blueskies123]

Gold, even when you go to sell you don't need to report

If you do this a make a profit is this not illegal?

 

[97guns]

i second the precious metals, paintings(art work), vintage cars,

Forgot about guns and cars.... any hard/tangible asset for that matter is easily hidden, I just sold my ,72 el Camino last year because I got married and didn't have time for it anymore, with a hard asset your not gonna make a killing on it but it will hold value and stay out of the eyes of the tax man

 

[97guns]

If you do this a make a profit is this not illegal?

Totally legal, google it. I've dumped off over 50k in metal since December to fund a home overseas,, my hands are clean

 

[Just_Steve]

Tax Avoidance Vs Tax Evasion is a fine line. Tread lightly.

 

[Refresher]

Quick question maybe...

i know that if you buy savings bonds, they only show up on your income tax when you cash them in. What other investments could you store assets in that don't create paper trails for tax forms until they are sold?

I think a lump sum to a variable annuity would work until you annuitize.
You can store physical cash or gift cards if you dont expect any appreciation.

 

[GrayHare]

I thought gold was in the 28% cap gains bracket, but now I see references state 28% is the rate for collectibles. Coins are the convenient way to buy gold, so then the question becomes are they collectible or not? I can't find an IRS defintion of collectible vs. non-collectible gold.

 

[LOL!]

One can buy Berkshire-Hathaway stock and it doesn't appear your tax return.

Any other stock that does not pay a dividend will do the same thing.

 

[Refresher]

I thought gold was in the 28% cap gains bracket, but now I see references state 28% is the rate for collectibles. Coins are the convenient way to buy gold, so then the question becomes are they collectible or not? I can't find an IRS defintion of collectible vs. non-collectible gold.

If you make a profit its a gain at you cap gain rate. 28% is max rate.

 

[rodi]

Quick question maybe...

i know that if you buy savings bonds, they only show up on your income tax when you cash them in. What other investments could you store assets in that don't create paper trails for tax forms until they are sold?

Why?

You could always buy Berkshire - which doesn't pay dividends or cap gains... so nothing to report.

But you always have to report when you cash out - bonds, stocks, etc...

US bonds are registered with your SS number - so there is a paper (electronic) trail of your ownership.

 

[Just_Steve]

Quick question maybe...

i know that if you buy savings bonds, they only show up on your income tax when you cash them in. What other investments could you store assets in that don't create paper trails for tax forms until they are sold?

I'm pretty sure savings bonds become taxable when they reach final maturity even if you don't redeem them.

 

[Texas Proud]

Totally legal, google it. I've dumped off over 50k in metal since December to fund a home overseas,, my hands are clean

You are only 'clean' if you reported it on your income tax return... if you did not then you are hiding income (if you made a profit) or losing a tax benefit (if sold for a loss)....

 

[97guns]

You are only 'clean' if you reported it on your income tax return... if you did not then you are hiding income (if you made a profit) or losing a tax benefit (if sold for a loss)....

https://www.jmbullion.com/reportable-bullion-transactions-infographic/

Stay below the minimum and don't report anything

 

[rodi]

Totally legal, google it. I've dumped off over 50k in metal since December to fund a home overseas,, my hands are clean

I googled it - as you suggested. And the irs.gov says it is taxable if you make a profit. So... perhaps your hands aren't as clean as you thought.

It includes precious metals in the list of capital assets:

Capital Assets
Almost everything you own and use for personal purposes, pleasure, or investment is a capital asset. For exceptions, see Noncapital Assets, later.

The following items are examples of capital assets.

Stocks and bonds.

A home owned and occupied by you and your family.

Household furnishings.

A car used for pleasure or commuting.

Coin or stamp collections.

Gems and jewelry.

Gold, silver, and other metals.

Timber grown on your home property or investment property, even if you make casual sales of the timber.

And they state:

Capital gain or loss. Generally, you will have a capital gain or loss if you sell or exchange a capital asset. You also may have a capital gain if your section 1231 transactions result in a net gain.

https://www.irs.gov/publications/p544/ch02.html

 

[REWahoo]

https://www.jmbullion.com/reportable-bullion-transactions-infographic/

Stay below the minimum and don't report anything

Guess you missed this part:

Reporting requirements do not exempt customers from capital gains or other relevant taxes.

 

[Beldar]

Title 2 firearms are an excellent investment (pending your local restrictions) that IMO has never experienced any depreciation in the last 30 years or so. The supply is fixed and the demand is always there (very little market fluctuation as in other tangibles). Some of my acquaintances have nearly all of their retirement invested in these items, and the appreciation can be 10%/yr or more.

Unfortunately, the transfer tax is not deductible, and the transfer process today takes 9 months or greater. And since you're in physical possession the storage requirements can be rather considerable.


_B

 

[ChiliPepr]

One can buy Berkshire-Hathway stock and it doesn't appear your tax return.

Any other stock that does not pay a dividend will do the same thing.

This. Anything that does not throw off income of capital gains would never show up on your tax forms until sold.

 

[Luck_Club]

Thanks. That is what I thought Gold, other "hard assets", I hadn't considered the annuity. I was trying to help someone through some discovery documentation, where he thinks money was taken by his brother from the estate.

From the last 3 years tax returns and mothers bank records, I see no asset transfers, and nor anything on the brothers taxes that couldn't be explained.

Thanks again for all the ideas. My advice was to forget about it if he did it you will have a hard time proving it.

 

[Blue Collar Guy]

he never said cheat on his taxes

Quick question maybe...

i know that if you buy savings bonds, they only show up on your income tax when you cash them in. What other investments could you store assets in that don't create paper trails for tax forms until they are sold?

he clearly stated to not report UNTIL they are sold. As such i suggested artwork, cars and precious metals. How posters inferred he wanted to cheat on his taxes puzzles me

 

[SecondCor521]

Thanks. That is what I thought Gold, other "hard assets", I hadn't considered the annuity. I was trying to help someone through some discovery documentation, where he thinks money was taken by his brother from the estate.

Anybody stealing from an estate is probably willing to commit tax evasion also. They're both probably felonies.

 

[Blue Collar Guy]

Which now brings up a related point, i was offered a job "off the books" as a bouncer $300 a night 10pm-4am. I made him a counter offer, $600 a night and i go on the books. As you can see im here posting he didnt like my proposal.

 

[Texas Proud]

https://www.jmbullion.com/reportable-bullion-transactions-infographic/

Stay below the minimum and don't report anything

And by 'anything' do you mean you think you do NOT have to put it on your tax return


There is a difference in reporting when buying and selling at a dealer which your link seems to talk about... but when it comes to taxes you have to report the sale even if you do not have a gain... now, are the 1099s etc. that you have to worry about... it seems not according to your link... but that is the same for interest from a savings account... I have one where I get maybe $5 a year and it is not reported to the IRS... I still put it on the tax return....