I buy an ounce of gold in 1985 for $300. I give it to my son in 2015. He sells it for $1000 cash.

When, where, how is it taxed?

Tax is due in the year that the item is sold by son. He will file it on his return for that year. His basis is your acquisition cost, so the tax rate is applied to $700 in your example. And since this is gold, the collectible capital gains tax rate will apply.

I thought the whole appeal of gold was to use it for barter?

Does not compute.

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Tax is due in the year that the item is sold by son. He will file it on his return for that year. His basis is your acquisition cost, so the tax rate is applied to $700 in your example. And since this is gold, the collectible capital gains tax rate will apply.

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Is this just honor system or what?

My guess is the IRS would say you owe tax on the entire sale price unless you prove otherwise.

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My guess is the IRS would say you owe tax on the entire sale price unless you prove otherwise.

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Yes, the taxpayer has to substantiate basis.

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Is this just honor system or what?

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The basis part or just disclosing the transaction in general?

This is my understanding, but I am by no means an expert. Hopefully it will lead your research in the right direction.

Before the financial crisis, or around that time, you could sell gold for cash and you could get away without reporting it to the IRS. Some legislation, around the time of the financial crisis, maybe Obamacare, requires metal dealers that purchase more than ~$1k from an individual to give them a 1099.

My understanding is that the trick is to sell in small quantities under the threshold to avoid the tax. Or you could sell to an individual investor for cash that is not bound by the 1099 requirements.

Most collectible & precious metal sales are pretty much an honor system if they aren't sold to a dealer issuing 1099s. Theoretically, it could be found in an audit, unless the entire transaction is handled via cash.

I have first hand experience wit this. Don't remember the rate we paid, but it was upwards of 27 percent or so. I was livid once I realized how high the rate was.

We had a substantial gain as we had sold close to 100 oz. of gold for several hundred dollars more than what we paid for it.

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I buy an ounce of gold in 1985 for $300. I give it to my son in 2015. He sells it for $1000 cash.

When, where, how is it taxed?

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What gold?

Good place to buy and sell- http://www.ar15.com/forums/f_7/149_Precious_Metals__Coins__Watches__andamp__Jewelry.html

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I buy an ounce of gold in 1985 for $300. I give it to my son in 2015. He sells it for $1000 cash.

When, where, how is it taxed?

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What gold?

Good place to buy and sell- http://www.ar15.com/forums/f_7/149_Precious_Metals__Coins__Watches__andamp__Jewelry.html

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Say he doesn't sell it. On my death bed, I buy $200k worth of gold and hand it to him (or just cash). Would the IRS knock on his door looking for it?

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This is my understanding, but I am by no means an expert. Hopefully it will lead your research in the right direction.

Before the financial crisis, or around that time, you could sell gold for cash and you could get away without reporting it to the IRS. Some legislation, around the time of the financial crisis, maybe Obamacare, requires metal dealers that purchase more than ~$1k from an individual to give them a 1099.

My understanding is that the trick is to sell in small quantities under the threshold to avoid the tax. Or you could sell to an individual investor for cash that is not bound by the 1099 requirements.

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and then get popped for "structured" transactions. ****ing gov will get you some how some way.

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Say he doesn't sell it. On my death bed, I buy $200k worth of gold and hand it to him (or just cash). Would the IRS knock on his door looking for it?

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Not likely that they knock at the door. But liquidating the gold could be tricky. Cash might be easier, but getting it into a bank would still require some level of work over a period of time. If you handed him cash and he just spent it over time - it might not ever be caught, you are right.

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I have first hand experience wit this. Don't remember the rate we paid, but it was upwards of 27 percent or so. I was livid once I realized how high the rate was.

We had a substantial gain as we had sold close to 100 oz. of gold for several hundred dollars more than what we paid for it.

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28%

and then get popped for "structured" transactions. ****ing gov will get you some how some way.

ask Dennis Hastert how this went for him.

FTR, I do not support tax evasion techniques.