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  #1  
Old 04-15-2011, 10:50 AM
govikesgo govikesgo is offline
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Default Just thinking out loud

With today traditionally being tax day I was wondering this. Since I believe the Estate tax is exempt for the first $5 million in an estate, Would it make sense or is it possible should God forbid a parent die, that your PM holdings be put in a safe deposit box, safe, etc. and claimed that this was part of their estate? If you had a safe deposit box in a parent's name which you held the key, if they died and say there was a couple hundred grand of silver and gold in it, would it not become part of their estate that would be exempt when you "inherit" it?
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Old 04-15-2011, 10:55 AM
PMStacker2011 PMStacker2011 is offline
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Any transaction under $10K does not get reported to the IRS.
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Old 04-15-2011, 10:59 AM
Jimmity Jimmity is offline
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Default safe deposit boxes

Safe deposit boxes are automatically sealed and inventoried when the owner dies. If you want private try basement safes.
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Old 04-15-2011, 11:01 AM
govikesgo govikesgo is offline
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Quote:
Originally Posted by PMStacker2011 View Post
Any transaction under $10K does not get reported to the IRS.
And this addresses my question how? I'm talking about getting away scott free with a huge stack that now the IRS CAN know about. Perhaps your parents were buying silver at $3 and ounce and just accumulated it over the years.
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Old 04-15-2011, 11:03 AM
govikesgo govikesgo is offline
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Quote:
Originally Posted by Jimmity View Post
Safe deposit boxes are automatically sealed and inventoried when the owner dies. If you want private try basement safes.
I'm not talking keeping it private. It's the opportunity to NOT have to fly under the radar. My assumption is that it will be a tax free inheritance.
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Old 04-15-2011, 11:03 AM
Jimmity Jimmity is offline
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Also consider state estate taxes. often they have a MUCH lower threshold than the federal estate tax.
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Old 04-15-2011, 11:05 AM
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SWCroaker SWCroaker is offline
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You holdings won't get taxed until you sell them, assuming you are a good doobie and self report your capital gains to the IRS.

The only impact "inheriting" your holdings from an estate would be to change your cost basis, or the amount that your capital gains are calculated from. If someone "gives" you bullion, you are supposed to have their cost basis transferred to you. If, on the other hand, you inherent something, your cost basis is set at whatever reasonable market price was on the day you inherited.

All of which means, there *may* actually be some benefit in first giving your holdings to your parents (be sure to stay under the annual $12k taxable gift limit [per person?], and then have them will it back to you upon death). The cost basis would go up, presuming Ag spot at time of death is greater than what you paid for it. And you'd owe less cap gains tax when you do sell, and self report. Somewhat morbid, but maybe beneficial.


Usual disclaimer: I stayed at a Holiday Inn Express once years back, read things on the Web of A Million Lies alla time, and therefore know everything about everything. Trust me implicitly.
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Last edited by SWCroaker : 04-15-2011 at 11:08 AM.
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Old 04-15-2011, 11:10 AM
govikesgo govikesgo is offline
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Quote:
Originally Posted by Jimmity View Post
Also consider state estate taxes. often they have a MUCH lower threshold than the federal estate tax.
My state has no inheritance tax. Surprisingly since I live in the highest taxed state in the land.
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Old 04-15-2011, 11:12 AM
govikesgo govikesgo is offline
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Quote:
Originally Posted by SWCroaker View Post
You holdings won't get taxed until you sell them, assuming you are a good doobie and self report your capital gains to the IRS.

The only impact "inheriting" your holdings from an estate would be to change your cost basis, or the amount that your capital gains are calculated from. If someone "gives" you bullion, you are supposed to have their cost basis transferred to you. If, on the other hand, you inherent something, your cost basis is set at whatever reasonable market price was on the day you inherited.

All of which means, there *may* actually be some benefit in first giving your holdings to your parents (be sure to stay under the annual $12k taxable gift limit [per person?], and then have them will it back to you upon death). The cost basis would go up, presuming Ag spot at time of death is greater than what you paid for it. And you'd owe less cap gains tax when you do sell, and self report. Somewhat morbid, but maybe beneficial.


Usual disclaimer: I stayed at a Holiday Inn Express once years back, read things on the Web of A Million Lies alla time, and therefore know everything about everything. Trust me implicitly.
Why go through all that. You can literally go to your parents house, put the silver in their dresser drawer and then claim it when they pass as part of their estate.
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Old 04-15-2011, 11:15 AM
theplantguy theplantguy is offline
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Having a separate legal entity in which to hold your physical PMs that obfuscates the real owner is the way to go.
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