July 15th Tax Filing Deadline Offers Opportunities to Precious Metal Investors
We all just got a three-month extension for filing our Federal taxes. That’s right, instead of filing on April 15th, we now have until July 15th.
Now, you might say, “What’s the difference, I’m going to have to file and/or pay my taxes anyway, right?” But you have another option. You can take the extra time you’ve been given to take a deep breath and consider some ways to get more value and income from the precious metals and precious metal scrap you own. Whether you center your holdings in platinum scrap, gold scrap, or silver scrap, here are some issues worth considering now.
Please note: It is up to you to talk with your tax preparer and/or attorney before you utilize any of the approaches we write about in today’s post. After all, each person’s financial situation is different and you want to make filing decisions that are right, and legal, for you.
Strategy One: Give Away Some of Your Precious Metal Scrap and Take a Tax Deduction
You’ve got a little time to think about it – three months, in fact. Why not consider giving some of your holdings to:
The college you attended
Your favorite charity
A local hospital that has provided good care to you or your family
An appropriate religious institution, such as your church, mosque, temple or synagogue
You can start by having your scrap or holdings tested by Specialty Metals Smelters and Refiners. Ask your tax preparer whether you need to also get your donated materials professionally appraised. In general, you might not have to get an appraisal if the value of your donation is less than $5,000; you can simply declare that amount as a charitable donation on your tax return. However, be sure to speak with your attorney and/or tax preparer before doing so.
Strategy Two: Gift Some of Your Precious Metal Holdings to Your Children or Other Family Members
Giving gifts to your future heirs is a sound strategy for reducing the size of your estate. In some cases, doing so might also reduce the estate tax they will have to pay after you die.
There are limits. You can give assets worth up to $12,000 tax-free to each of your heirs. Plus, married couples who file jointly can gift up to $24,000 to one recipient. Again, be sure to discuss the gifting option with your tax preparer and/or attorney. In some situations, heirs will realize a larger financial benefit if they inherit assets instead of receiving them while the donor is still alive. There are a number of “moving parts” to consider in making this decision. But in some cases, gifting precious metals to heirs can be a win/win proposition for everyone involved.
Strategy Three: Set Up a Foundation, Corporation or Trust that Will Own Your Precious Metals
These options are most often used by very wealthy individuals. But the fact remains that in some circumstances, the most advantageous way to own valuable assets is not to own them at all, but to transfer ownership to a tax-advantaged entity. Talk with your attorney or accountant.
It All Starts with Knowing What You Have . . .
The first step in using the strategies we describe in today’s post is to know the value of the precious metals you own. Remember, we are here and ready to test your precious metal scrap and offer a statement of its value. Call us at 800-426-2344 to learn more.
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