Health care law requires 1099 for Gold purchases

Well, that's the alarming implication. If you believe in the global meltdown, and you use your business to buy gold coins as a hedge, you need to report it. Worse, your office supplies will have to be reported.

www.irs.gov...

...
A provision in the Patient Protection and Affordable Care Act (PPACA)47, enacted in March of this year, added a new information reporting requirement that may present significant administrative challenges to taxpayers and the IRS. In particular, businesses will have to issue Forms 1099 for goods purchased after 2011, regardless of the corporate form of the vendor.48 The Office of the Taxpayer Advocate is concerned that the new reporting burden, particularly as it falls on small businesses, may turn out to be disproportionate as compared with any resulting improvement in tax compliance.

Under prior law, information reporting was required for the purchase of services but was not required for the purchase of goods. A person who made payments in the course of a trade or business to a vendor totaling $600 or more for services or determinable gains inany taxable year was required to furnish an information report to the IRS, with a copy to the vendor. This report, generally a Form 1099-MISC, Miscellaneous Income, sets forth the total amount of the payments as well as the name, address, and taxpayer identifying number (TIN) of the vendor.

I looked at the PDF and don't see gold listed there. It does say "goods," but this isn't really a change I don't think. I believe it's been there a while because I scratch my head over it every year when I'm doing my taxes.

Sorry I can't cleanup the above post. Forum won't let me edit the post.

The implication is that your business has to file a 1099 for every goods purchase over $600. Previously it was only for services (contractors). If the goods you purchase are gold coins, that is now tracked. Those who remember will recall gold ownership being outlawed in the past during economic hard times.

There are repercussions to not being able to read laws before they're passed by politicians that didn't read the law. Bad things happen to the country seemingly according by agenda, intentionally, on purpose.



[edit on 21-7-2010 by Dbriefed]

Why would you be using company money to buy gold unless you're a goldsmith or dealer? That's the only reason you'd have to file anything in any case.

If you are buying gold for personal reasons, you use your own money and no report is required. So unless you're playing fast and loose with other rules, or you've been using company funds or business privileges to hide the purchases or avoid taxes, you shouldn't have a problem.

If you want to own gold, just use your own money...simple.

There are some private businesses that hold cash in gold, the employees would not be buying gold with company funds, but that's an interesting idea.

Coin/gold dealers would need to report fairly small purchases through 1099 forms. If they have to track inventory coming in, they will have to track it going out. Normally buying gold coins from dealers assumed some privacy for personal security reasons from criminals or government confiscation.

You have to report it if you are a single person / family - and you pay quite a hefty tax.

IMO it would make sense for corporations to do the same, no?

Probably just a bout of goldbug paranoia but somehow I get the impression that precious metals are being spun as the focal point of this new reporting reg ? Lucidity correctly pointed out that Gold/Silver aren't even mentioned. As it stands, this law, effective 2012, will require a 1099 on every $600+ sale/purchase...that means all business transactions at or above the $600 minimum. Your new Apple computer...Sony LCD 50" TV...that new washer/dryer set - airline tickets, you name it...all reportable.

The idea being that when we know for certain that big brother is closely monitoring our financial transactions...we, as well as our commercial enterprises will be less inclined to cheat on tax filings. With this latest attack on privacy, the gubmn't hopes to increase tax reporting by $17 billion...money needed to fund the health-care reform bill few of us wanted to begin with.

This new reg as it applies to precious metals transactions has been discussed in the online Gold community for the past month or so...interesting that MSM is just coming around.

reply to post by OBE1


I don't mind reporting to the IRS my income.. I can't escape taxes.. but I will never report to them my expenses unless I'm getting a tax write off for it. So unless it's the business filling these forms out.. I will refuse to touch them.. and if the seller wants my tax id number (which I've never even heard of before) he can kiss my arse.

This Government and it's god awful bureaucracy is getting out of control..

Guess it wasn't pure paranoia after all, and I'm sure I'm not the only Gold investor to take note of last weeks CNBC package on this issue....a most egregious effort by the Gold denigrators to paint the new 1099 reporting standards as somehow precious metals specific.

The lengths to which the money masters will go to discourage public participation in honest money knows no boundaries. Despite decades of market manipulation and misinformation aimed specifically at the uninitiated, these obvious scare tactics and capping efforts ultimately amount to nothing more than re-arranging chairs on the deck of the fiat Titanic.

One glance at a 10yr chart tells the story...but Jesse says it best....

24 July 2010
The Health Care Bill Change in 1099 Reporting Requirements Does NOT Target Gold and Silver

On another matter, there is some misinformation creating concern, bordering almost on mild hysteria at times, about a change that was made in the Health care Bill Section 9066 regarding the reporting of sales of over $600.

There are those who say that the purpose of this law is to track the sale of gold and silver.

Full Text

Originally posted by apacheman
Why would you be using company money to buy gold unless you're a goldsmith or dealer? That's the only reason you'd have to file anything in any case.

If you are buying gold for personal reasons, you use your own money and no report is required. So unless you're playing fast and loose with other rules, or you've been using company funds or business privileges to hide the purchases or avoid taxes, you shouldn't have a problem.

If you want to own gold, just use your own money...simple.

Not that simple if you go to sell gold and the sale is over 600.00 youll be getting a 1099 and expected to pay taxes on the gold purchase as a capital gain.So if you have any old necklaces or rings better sell them now.

A 1099 only needed for cash deals above 600.00
If a Credit card or debit card is used then no 1099 needs to be issued.
So in a sick way they are saying precious metal = cash!
although I won't get any, since they can seize it anytime they want
like they did in 1933.

Originally posted by Gmoneycricket
A 1099 only needed for cash deals above 600.00
If a Credit card or debit card is used then no 1099 needs to be issued.
So in a sick way they are saying precious metal = cash!
although I won't get any, since they can seize it anytime they want
like they did in 1933.

How many businesses and corporations purchase their inventories from suppliers using cash ?

$600 Sale? Get Ready for Tax Form

The responsibility for issuing forms kicks in at $600 for coins or bullion – not a very high level and one that has already started sounding alarm bells. It doesn’t matter in what form payment is made, whether cash, check, credit card, or Yap stone money, the $600 threshold applies.

Full Text

On Roosevelt's Gold "confiscation"...did ya know that out of the 13.9 million ounces in circulation, only 3.9 million ounces (21.9%) were actually surrendered ?

We therefore concluded that in Jan. 1934 the bulk of the [13.9 million ounces] was retained illegally in private hands. - Milton Friedman and Anna Schwartz: "A Monetary History of the United States, 1867-1960". - Link

Apparently, only the minority was feeling "patriotic". Those that did comply were payed the official market price on exchange.

*

dragonridr...Gold/Silver sales have always been subject to capital gains tax, this includes personal jewelry sales. - Link

Health care law requires 1099 for Gold purchases

Ixnay-ed.

Small biz applauds 1099 repeal

President Barack Obama last week signed a bill to repeal part of the federal health care reform law that would have required small businesses to file 1099 forms for purchases of $600 or more. - Full Text

Condolences to any apocoholic who was expecting this provision of the health care bill to crush investor sentiment, and kibosh the retail precious metals market.

GL