Tax Free Gold
This will depend largely upon which country you live in and even which state or province in that country you reside. The tax laws in the western countries are known to be some of the most complex in the world and in the US the tax laws and regulations are extremely complex.
Capital Gains Tax on Gold Bullion
In some US states, for example, tax is not paid on the purchase of gold bullion but if you sell gold bullion you may incur a capital gains tax if you sell gold for for a higher gold price than what you purchased at.
Sales Tax on Gold Bullion
As far as Sales tax is concerned, gold coins are legal tender in the country in which they are usually made or made for and sold. Gold Eagles are legal tender in the US for example, and so do not incur any tax on purchase or sales.
The same applies to Gold Sovereigns in the UK or Maple Leafs in Canada or Kookaburras in Australia.
In the UK, VAT (Value Added Tax) is applied to the sales of some gold bars. But as gold coins are not an investment, although could be used for such a purpose, they are legal tender and of course one cannot tax the currency of a nation. Least ways not yet!
In Australia there is no GST on the sale of pure gold bars and gold coins but there is GST on American Eagles should you buy them from a gold dealer who is registered for GST, as American Eagles are not pure gold. You may not have to pay GST if you buy them from a private seller on ebay.
Understanding Tax Implications
So it would require some study, some financial and tax advise, perhaps before you buy gold bullion. Knowing which is the most appropriate gold bullion to buy may make a big difference to your own tax situation.
It is said that only two things are certain in life and that is taxes and death. It is possible that some gold bullion could be exempt from tax and this would certainly be welcome news to gold enthusiasts.
A tax free status does not apply to investments, stocks or even exchange traded funds, all of which may incur a tax of some sort, either on the investment or on the interest or ‘profits’ derived from such.
One should always consult with ones tax and financial adviser when it comes to any investments or the purchase or sale of any gold bullion or gold coin collectibles.
Regardless of any tax implications in buying gold, it is an excellent idea to put at least some of one’s hard earned money in gold coins and take advantage of any tax free gold bonus where one can!