Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Non-Reportable Gold

Commodities / Gold and Silver 2014 Aug 25, 2014 - 11:57 AM GMT

By: DailyWealth


"If I hold gold at a bank in Switzerland, is that reportable to the IRS?"

That little question sure kicked open a can of worms...

Lawyer Joel Nagel had just opened the floor for questions at a conference at the fancy California Club in L.A. Right away, he was hit with that one.

I knew I could sit back for a while and watch the sparks fly after that question.

You can imagine the questions that followed... "If it's non-reportable, then do I have to pay taxes when I sell it?" Of course you have to pay taxes.

"Reporting" requirements for financial assets have increased dramatically this year – especially for assets held overseas. If you have a bank account overseas or an investment account overseas, then the IRS wants to know about it. It requires you to report it.

But what about gold?

Joel was honest with the crowd. He explained – in simple terms – how the IRS sees it.

In short, the IRS does not consider gold held abroad as a "foreign financial asset."

So if you have a property outside the U.S., and you have gold outside the U.S., then you are free to bury your gold on your property and not report it, if that makes you happy.

It is your gold. And even with the newer, more onerous reporting requirements, you don't have to file any paperwork on your gold.

You don't have to file any paperwork on any foreign property that you own in your name either, for that matter... The IRS does not consider foreign property to be a foreign financial asset either. So both foreign property and gold are considered "non-reportable" foreign assets by the IRS.

(Again, please don't confuse "non-reportable" with "non-taxable." If you sell at a profit, you pay taxes on that profit.)

The key thing here is that YOU hold them.

It gets tricky fast, though...

For example, what if a foreign bank holds your gold? Now you probably have what Joel calls "counterparty" risk...

If there's counterparty risk, then your gold MIGHT be considered a foreign financial asset – and therefore reportable. The same is true with a property... If you personally own it, that's fine. But if it's held in other ways, then it might be reportable.

So how do you distinguish between what is reportable and what isn't?

Joel told the crowd that the IRS actually does a nice job on its website clearing up questions about reporting requirements. This question and answer from the IRS is a perfect example:

Question 22. I have a safe deposit box at a foreign financial institution. Is the safe deposit box itself considered a financial account?

No, a safe deposit box is not a financial account.

That's interesting... If I read that correctly, then it's not reportable if you want to hold gold in a safe deposit box in a foreign bank. However, if the bank holds your gold for you, and it appears on your bank statement, then – from how I understand it – that's considered a foreign financial asset.

I am not the expert on this, but it seems like if your gold is in your safe deposit box, then it is yours, it is not a financial asset according to the IRS. But if it is on your account statement, then it's likely a foreign financial asset.

Reporting requirements have gone up on financial assets, particularly ones held abroad. If you are uncertain at all, you need to consult with a lawyer like Joel to make sure you are complying with U.S. laws. (You can learn more about Joel Nagel here)

Your best starting point about whether assets are reportable or not is actually the IRS "Basic Questions and Answers" page right here.

Check that out... it's pretty darn informative if you have an interest in this...

And remember, once again, just because it is non-reportable does not mean it is non-taxable!

Good investing,


Editor's note: If you'd like more insight and actionable advice from Dr. Steve Sjuggerud, consider a free subscription to DailyWealth. Sign up for DailyWealth here and receive a report on the top ways to protect your money, your family, your health, and your privacy. This report will show you the best "common sense" solutions to help you protect yourself from some of the worst elements in America today. Click here to learn more.

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2013 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in