If you bought precious metals at high prices a few years ago and want to dispose of them now, can you declare a loss on your April tax return? And is it a good idea?
Is It a Good Idea?
Frankly, we are not going to answer that question on today’s post, because it is a question that only your financial advisor or tax preparer can answer for you. There are many variables to consider – your tax bracket, your other investment gains or losses – and we are not in a position to offer that kind of advice.
If You Sell Your Precious Metals Before Year End, Can You Declare a Loss on Your Taxes? Image Credit: Tuned_In/iStock.
What we can do, however, is answer the following question . . .
How Do You Estimate How Big a Capital Loss You Have Incurred?
It is actually pretty simple.
First, add up the following sums to determine the tax basis of what you have . . .
- The amount of money that you paid for your precious metals.
- The expenses that you have paid to obtain and maintain them, including dealer commissions, appraisal fees, insurance costs and storage fees.
Second, compare that tax basis to the amount of money you should receive when you sell your precious metals. If you will lose money, you can declare a loss on your 2015 taxes. (Just remember that in order to do that, you have to sell the metals before the end of calendar year 2015.)
Suppose You Own Precious Metals that You Haven’t Recycled Yet?
Let’s say that you have a pile of 500 catalytic converters, or a lot of silver scrap, or old gold shavings that you would like to sell now for a loss. The fact is, it is going to be difficult to establish a value for your holdings in time. As we publish today’s post, there are only a few weeks left before the end of 2015.
But we have a great suggestion for you. If you call Specialty Metals Smelters and Refiners today at 800-426-2344, we can set up a Precious Metals Pool Account for you, even if your metals have not yet been tested or recycled. It’s an effective, powerful way to position yourself today to profit when prices rise. And here’s more good news. There is still time to use this strategy before the end of calendar year 2015.
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