Why Giving Precious Metal Scrap to Family Members Is the Best Holiday Idea Ever

Precious Metals InvestingRecycle Precious Metals
Written By Barry Lenson

Holiday gift-giving season has started. You could give the people on your list all kinds of great presents – kitchen appliances, car accessories, actually anything you think they would like.

But if you are in a generous mood, we have a suggestion for you . . .

Why not give them precious metal scrap?

It’s an idea that could work well for you if you invest in precious metals.

About Making Tax-Reduced Gifts

The annual exclusion, which has been around for years, allows you to make tax-free gifts up to a specified dollar amount to an unlimited number of individuals each year. For 2021, the total annual exclusion amount is $15,000 for individuals and $30,000 for married couples.

What are the benefits? A quick estimate shows that your tax savings could be up to $60,000 this year. Plus, you can do it again next year, and in every following year. You will also be keeping those funds out of the accounting when you pass away which, depending on your financial picture, could result in a much lower estate tax payment for your heirs when you pass away.

The people you give gifts to could enjoy significant financial benefits.

What Kind of Accounting Do You Need to Make for Gifts?

This is a question you should discuss with your accountant/tax preparer. The fact is, you cannot give a gift and tell the IRS, “This gift was worth $150,000 (or worth any other figure that you pull out of nowhere). Instead, you need to provide the IRS with an appraisal, or other accounting, of the value of your gift.

Again, you need to discuss this strategy with your accountant. But one place to start, your accountant will probably agree, will be to get the precious metals you are giving tested and assigned a dollar value.

If you have, for example, a quantity of precious gold, platinum or silver scrap that our tests show is worth, say, $4,000 (just a random figure we have pulled out of thin air), you could be able to give that scrap to anyone you want and deduct its value from your income for tax purposes.

So your first step, after speaking with your accountant, is to call our precious metal refiners at 800-426-2344 and ask us to test your scrap (or other precious metal holdings) and issue you a report of its value.

What Else Can You Give Away as Gifts?

The answer is, you can gift anything you own – cash, appreciated assets, cars, art, actually anything. If you can provide the IRS with an appraisal of value from a qualified expert or source, that is. 

It’s a tax-cutting strategy that has been used for years by wealthy individuals, and sometimes by people who are not actually rich.

Give us a call today at 800-426-2344 to learn more.

Barry Lenson
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