Nothing is tax free but there are ways to circumvent the tax process without illegally trying to evade the payment of taxes. Tax free gold bars can also be bought. US tax laws are very complex as in some states you are liable for capital gains tax if you sell gold at a higher price than the one you paid for when you bought. No taxes are slapped on purchase.
Gold Eagles being legal tender in the US like Maple Leafs in Canada, sale tax is exempt on purchase and sale. Great Britain does not tax gold coins as they are legal tender but some gold bars are liable for value added tax.
Buying American eagles form a gold dealer registered with GST will make the buyer liable for GST or sales tax, but not when it is bought online or from a private seller. The best bet lies in a prospective gold bar buyer checking out with his tax adviser first before going for the purchase.
Like any investment, for gold bars too expert advice from the finance person should be sought. And in the US there are separate tax structures for separate states. Tax free gold bars can be bought over the internet via bullion exchanges and storage providers. They can also be physically bought.
Super wealthy people from banana republics to semi-developed nations park their unaccounted money in banks all over Switzerland and Liechtenstein or register their companies in the Isle of Man or the Cayman islands. So it is equally possible for gold bars buyers not to pay tax on their purchases.
Banks in Europe, mainly Switzerland, Austria, Liechtenstein and Switzerland are known to have exclusive gold bars counters where gold bars can be bought and sold without paying a single dollar worth of tax.
As gold bars are becoming part of the investment portfolio, more investors are opting for gold coins and bars which can hedge losses in other risky financial instruments. People buy more gold bars than ever or park their money on gold when the economy slumps and other avenues disappear.
In 2004 the demand for gold bars as an investment alternative far exceeded demand for jewelry products as more gold investment products had been launched. It is financially wiser at times to hold gold than stocks or real estate which might crash. Bubbles burst easily in financial markets but not in gold markets unless gold looses its luster.
Just before the US elections, Republican Ron Paul tabled a bill for abolition of taxes on certain gold bars and bullion. But now things have changed and with a new US administration assuming office shortly, tax breaks on gold bars are dependent on new laws. Willful investors must keep their nose on the ground and take every opportunity where taxes are not levied.
Gold is the oldest form of investment, purest form of money and more durable and an ultimate asset which can survive volatilities in economy and the financial markets. No one how powerful can mess this up.
Kingster H has been a collector of gold coins and gold bars for over 20 years. He owns and operates the website On The Gold where he has a store where gold bars of different sizes and values are sold.
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