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Quiet Guy

Could It Happen Here?

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ABC News have reported a curious development:

http://abcnews.go.com/Business/gold-coin-dealers-decry-tax-law/story?id=11211611&page=1

"Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of Form 1099. Currently, 1099 forms are used to track and report the miscellaneous income associated with services rendered by independent contractors or self-employed individuals. Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change."

Not surprisingly, this is not welcomed by precious metal investors in the USSA. I find it amazing that a law like this can be sneaked into health care legislation.

Could something like that happen here? :unsure:

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So every time a member of the public sells more than $600 worth of gold to a dealer, Piret said, the transaction will have to be reported to the government by the buyer.

You could really only sell sovs, half sovs and other small coins such as 1/10th Britannias. And even then, only one at a time. And that's assuming the POG doesn't reach some of the targets quoted on here.

Pat Heller, who owns Liberty Coin Service in Lansing, Mich., deals with around 1,000 customers every week. Many are individuals looking to protect wealth in an uncertain economy, he said, while others are dealers like him.

With spot market prices for gold at nearly $1,200 an ounce, Heller estimates that he'll be filling out between 10,000 and 20,000 tax forms per year after the new law takes effect.

"I'll have to hire two full-time people just to track all this stuff, which cuts into my profitability," he said.

Hmmm... given the UK's love of bureaucracy, maybe it could happen here.

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Hmmm... given the UK's love of bureaucracy, maybe it could happen here.

Given that you already have to document every purchase and sale in your company accounts I don't see what the issue is.

My God doing business in the US must be a nightmare. Whoever said it was business friendly.

Edited by Peter Hun

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Given that you already have to document every purchase and sale in your company accounts I don't see what the issue is.

"provision to the law that puts gold coin buyers and sellers under closer government scrutiny."

The issue is that the US government seems to be intent on building up a detailed database of everybody who buys or sells gold.

"This provision, intended to mine what the IRS deems a vast reservoir of uncollected income tax, was included in the health care legislation ostensibly as a way to pay for it. The tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation."

Unless the gold dealers are accused of tax dodging, I interpret this as a plan to extract extra income tax from private individuals who sell gold or I am missing something? The idea is that if another 1933 style consfication is too difficult, then just put a tax on gold sales profits. Of course this new tax would be more effective if the government knew who has gold.

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The Jesse's Café Américain website has issued a commentary downplaying the significance of the 1099 Reporting Requirements in Section 9066 of the Healthcare Bill

"The change in the law does NOT 'target the sale of gold and silver.' I don't like the provision and think it was written badly, generating senseless paperwork for small businesses in a desire to make more business to business transactions subject to 1099 MISC for purposes of income reporting. I suspect and would hope that the interpretation of this law and its requirements will clarify the issues. If this change in the requirements includes what are essentially retail transactions then it is very badly written indeed."

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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