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View Full Version : New 1099 Reporting Requirement...GOLD!


Insider
August 23, 2010, 23:09
New 1099 Reporting
Word is out about the 1099 reporting requirements that were buried in Obama’s health care legislation. If they go into effect, starting in 2012 precious metals dealers will have to report to the IRS on 1099s all purchases of $600 or more from clients in a single year.

These regulations will create a paperwork nightmare for precious metals dealers, greatly increasing our costs of doing business. As is the case in all businesses, higher costs are ultimately reflected in the prices of the products that businesses sell.

But more ominous than higher prices, sellers will have to provide identification to dealers, such as driver’s licenses and social security numbers. If that information is not adequately secured by the purchasing dealers, sellers could become victims of identity theft, which is a major crime today.

Further, the new 1099 reporting could endanger the personal safety of precious metals investors. Again, if the records are not properly secured and fall into the wrong hands, that information could cause criminals to conclude that the sellers have other precious metals in their homes.

Clearly, these regulations were not well thought out, and already there are bills in the House and the Senate to repeal these onerous and invasive regulations. To stop these regulations from going into effect, there will have to be a huge outcry – not just from precious metals dealers but from all business owners who will have to comply.

Already, trade and business associations are objecting and calling for support of the repeal bills. However, precious metals investors should not hope that someone else gets the regulations repealed. If the regulations go into effect, precious metals investors will be impacted much more than average Americans will be impacted.

shlomo
August 24, 2010, 05:23
Well, duhhhh.

How in the hell do you think the Kleptocracy is gonna steal it, if they don't know where it is?

I mean, really.

SWOHFAL
August 24, 2010, 05:47
Buy in half ounce or smaller increments from multiple sources.

shlomo
August 24, 2010, 05:51
The interesting implication here is that, somehow, the purchase of a metal commodity at fair market value constitutes reportable income.

Think about that for a while.

FNfreak
August 24, 2010, 06:41
So if I buy $1000 of GOLD in January of 2012 file the 1099 and by Novemeber of 2012 the same GOLD is worth $3000, will they TAX me CAPITAL GAINS for the $2000 increase in value if I sell???? Or maybe, some other TAX (property) to extract wealth from my back pocket. I'll BET you a 1870 $5 gold piece they WILL!!!!:mad:

There are ALL kinds of evil implications to this law being written into the healthcare bill. why else wuld they have hidden it in THIS BILL??

easttex
August 24, 2010, 06:57
Do you guys think the next Congress will allow this to come to life?

Stoney
August 24, 2010, 10:26
what will the street drug dealers do?

SWOHFAL
August 24, 2010, 11:42
Originally posted by Stoney
what will the street drug dealers do?

They like Euros, which is why the 500 Euro note is featured heavily in rap videos. Homies be goin' global.

shlomo
August 24, 2010, 17:49
Originally posted by easttex
Do you guys think the next Congress will allow this to come to life?

Yes.

There's a reason why I called it a "kleptocracy".