Monday, April 26, 2010

Being paid in gold bullion?

What is your opinion of being paid in circulated gold bullion coins? For example, I demand that I get paid in regularly circulated 1 oz $50 gold bullion coins. Should I get taxed on $50, the face value of the coin, or $960, the price of gold? Just curious.

Being paid in gold bullion?
The market value of the coins, which is probably near the value of the gold in the coins.





Whether the coins are US currency is completely irrelevant, as you could insist on payment in 19th century US gold coins, and the result would be the same.





Reading the fraudulent web site you referred to, one could also insist on being paid in currently circulated coins with errors. The face value is still irrelevant. In the absence of further information, the value of a $50 note is $50, while the value of the $50 coin is approximately $960.
Reply:it would be on the price of Gold. Gold is not the current currency of the US (it should be though!)...so that's why.
Reply:The value of the gold at the time it's given to you is the ONLY valuation that the IRS will accept. Face value of the coins is irrelevant as gold coins are no longer legal tender in the US.
Reply:This is a barter situation. You are taxed on the Fair Market Value of the consideration received.


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