Two Tax Code Strategies Your Advisor Didn’t Tell You About (Or Doesn’t Know)
By Carl Weber III
The answers to today's questions reveal two tax strategies even veteran precious metals investors and their advisors are often unaware.
April 15th is looming and you must act now to take advantage of these little known strategies and opportunities.
Set aside 20 minutes today to call us at 877-340-0790. We will explain the strategy and get the process in motion, so you won’t miss the tax deadline or this underpriced market.*
I hear you can’t buy more than $10,000 in gold in an IRA. Is that true? Solomon G., Clinton, New Jersey
That’s absolutely false! You can put your entire yearly allowable contribution into your IRA and buy precious metals. That includes 2015 and 2014, if you haven’t contributed already.
Plus, you can use any and all of your existing IRA funds to buy gold, silver, platinum and palladium - with no limitation.
After discussing the program of your choice with your Preferred Client Relations representative, you will open a self-directed IRA. After funding, submit an Investment Direction Form to your custodian to purchase the precious metal of your choice from ASI. We will do the rest. We can help you select the appropriate custodian, if you don’t have one. You can even store your IRA precious metals offshore.
One simple, very popular strategy is our Perth Mint Certificate Program (PMCP). Your holdings are stored in the Perth Mint in Western Australia, with no storage fees (for gold and platinum only), 100% insured and guaranteed by the Government of Western Australia for safety.
An online alternative is our ASI Precious Metals Direct Program (ASIPMD). Set up a relationship in a few short steps online. IRA funding can come in the form of a roll over from other qualified plans or a new contribution. Store your IRA holdings in New York or Salt Lake. Gold Eagles are available for storage overseas in Zurich, Switzerland. Do it all from any computer, smart phone or tablet.
URGENT REMINDER: You have only until tax day to make a contribution. Give yourself enough time to get this done. It takes a solid week from start to finish, if you already have the funds in your IRA. Just call for an ASI Preferred Client Relations representative to help you, post haste.
I've been reading your tax swap articles; but, frankly I don't see exactly how a tax swap can benefit me? Gail P., Spokane, Washington
A little known code under IRC section 1031 states you can sell precious metals and re-buy them immediately. That’s called a ‘precious metals tax swap.’ Unlike stock tax swaps, you don't have to wait 30 days before repurchasing.
If you have a loss in your precious metals portfolio, but intend to retain your holding, a swap can provide you with a tax loss while keeping your portfolio intact. If you don't need a loss in the year of the swap you may even be able to carry $3,000 per year of the total loss forward into years in which it will be useful to offset gains.
What is the tax loss worth to you? ASI President, Rich Checkan, gives some helpful scenarios in his March Information Line lead article Turn a Precious Metals Loss into a Gain – NOW – with Tax Swaps. Your tax advisor can give you exact figures.
Sounds easy… but there is a specific process to correctly doing a precious metals tax swap.
Gold prices are slated to rise and silver is at a very low price point. Read the analysis in our latest articles. You need to act now before prices rise and your opportunity to buy back at current low costs has passed. Also, you must send us the actual metal in order to make the swap. That can take a few days and markets change quickly.
Our ASI Preferred Client Relations representatives have assisted with dozens of swaps. We apply a preferred commission – 2% spread for bullion and Perth Mint Certificate swaps and 4% for numismatic coins. Call us at 877-340-0790 or send us an email and lock in your benefit.
Where in the World is ASI?
We are in our Rockville, Maryland office for several weeks. If you are in the Rockville or Washington, D.C. area, please make an appointment to visit us and meet with any of our in-house authors and Preferred Client Relations representatives. We’d like to sit ‘kneecap-to-kneecap’ with you and talk about precious metals, rare coins, rare stamps and rare strategic metals. We want to help you Keep What’s Yours!
* Disclaimer: I am not a tax advisor and I cannot give you tax advice. You should always consult with your tax advisor before making any tax related decisions. However, I will pass along to you my understanding.