I currently operate as a sole proprietorship in the US. I recently purchased a 10 oz. brick of gold bullion. Here is my question: Does this gold count as a tax write off? Can I subtract the price of the gold from the income I file? Is there any special paper work needed to do this? Any help would be greatly appreciated.
Im not 100% sure whether it would or not, i would presume so. However when it comes to selling it you will have to pay tax on it then. Im not sure whether you would be liable for cgt also. Speak to a financial advisor but i think all you are effectively doing is delaying the tax you will be paying.
Buying a bar or coin itself conveys no tax advantages; it has to be in an IRA. USAG has some fairly detailed info on the qualifications and process: http://www.usagold.com/ira.html Frank
He is looking at a way to reduce or get rid of his tax. Unfortunately gold isnt that way. Just noticed, you have a lot of tax links and things yet you dont know what a tax write off is? - Sounds like half the financial advisors i work with.
He was asking what the OP meant when he used the term since the OP's post did not make a whole lot of sense.
No, it's not a 'write-off'. It's simply a currency exchange. You haven't spent any money. No loss of profits, no cost of business.
I know what he was asking and it makes perfect sense if your in the business and i would imagine even if your not. I was only making a jokey comment i was'nt trying to be offensive. But to be honest if your making websites about tax you should know what a tax write off is, its 1 of the first things you learn in your exams.
And I forgot to add; No purchases of store stock, items for sale, etc. are business expenses UNTIL you sell them. Then, you can deduct their cost. ie You spend $10K to stock your store in '08, but sell nothing, your deductible is '$0.00'.