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July 27, 2018, 1:28 pm

What You Need to Know About Taxes on Precious Metals

by: The Financial Blogger    Category: Investment, Market and Risk

If you’re new to buying precious metals then you may be wondering what your tax situation is when it comes to selling the bullion for a profit.

There are individual state tax laws, as well as federal laws to abide by. This means that you need to talk to your accountant or a tax advisor once you’ve bought your gold bars from this website.

The IRS treats precious metals as capital assets

As a result of this, gold, silver, platinum and palladium may attract capital gains when they’re sold at a profit. The IRS also views precious metals as a collectible, so they can have tax levied on their profits up to the maximum of the 28% capital gains tax (CGT).

The taxes aren’t calculated and applied until the metal is actually sold, because the capital gain hasn’t been realized until then. So, say you buy 10 ounces of gold at $1,100 per ounce and place it in a depository for several years. While it’s in storage it appreciates in value to $1,300 per ounce. You decide to sell it at this price, which realizes (as in, makes real) the capital gain of $2,000.

Do I owe tax on this $2,000 profit?

You need to calculate the original cost of the metals, which in this case was $11,000, and then the selling price, which was $13,000. This makes you a profit of $2,000. Your federal tax bracket will determine whether you owe tax on some or all of this profit, which is why you need to speak to an advisor. There are also several special conditions that you need to factor in.

If you’ve inherited the metal things may change

If you’ve inherited the metals then a different calculation method is used to work out the cost basis – the cost basis in this case is the market value of the metal on the day of your benefactor’s death.

If you’ve been gifted the metals

The cost basis is calculated by the market value on the day the person giving you the metals bought them – not the day you received them. Sometimes the market value is less than the amount the person actually paid, in which case the cost basis is worked out from a fair market price from that day.

In short, though, you probably will owe tax on some or all of the profit.

What rates might I have to pay?

This depends a lot on your usual income tax rate and the length of time you’ve had the metals before selling them. You already know that the IRS sees precious metals as collectibles, so you’ll possibly have to pay the 28% CGT. It also matters whether you’ve held the metals for less or more than a year as less that a year counts as a short-term gain, which is taxed differently.

When is the tax due?

You report your capital gains from your metals in your yearly tax return and then pay any tax owed in due course.

What if I sell at a loss?

Hopefully you won’t, but if you do, then you have a capital loss, not a gain. You can offset capital gains from other sources against this loss either in the same tax year or in future tax years or you can offset it against your ordinary income (with some restrictions). Ideally, you need to speak to your tax advisor for the most up-to-date advice.

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June 25, 2018, 5:08 am

Get The Best Price When You Sell Gold Coins

by: The Financial Blogger    Category: Investment, Market and Risk

Investing in gold coins can’t be a one-way street. You need flexibility and the ability to trade gold coins back and forth to respond to market changes and adjust your portfolio appropriately. A smart investor doesn’t just sit on their portfolio. Even passive investors need to make adjustments to meet their investment goals. But when your portfolio includes gold coins (which it should), how do you sell gold and get the best possible price?

Expect Spot Prices on Gold Coins

If you’ve done your research on gold coins and invested strictly in bullion gold coins, expect to sell gold coins at or near spot prices at the time of sale. That’s the price you would pay if you bought gold coins today, plus premiums, so expect it when you cash in. There will likely be fees such as shipping and insurance, which should always be factored into your earnings calculations before you sell. Always know the exact gold contents of your coins, including purity and weight.

Sell Gold Coins to Online Gold Sellers

Reputable gold sellers should be the first place you go to sell your gold coins. If they operate online like Silver Gold Bull, it’s even easier to do business with them. Always do your research into gold buyers. Check their credentials and reviews online and make sure they’re the real thing. Here’s what happens when you sell gold to a dealer like Silver Gold Bull:

  1. -Fill out a quick online form with product details to get a quote
  2. -Get a shipping label with insurance from the company once you’re approved
  3. -Get paid as soon as your gold coins are verified

If you’re selling bullion gold coins, never go to a pawnbroker or a cash-for-gold business. These are better options if you’re selling gold jewelry that will fetch a smaller price. That’s because gold jewelry is typically melted down for bullion, incurring higher costs. That process doesn’t need to be done for bullion gold coins.

Hold onto Gold Coins

Successfully investing in gold coins means carefully watching the market. You have to take your portfolio’s needs into consideration when you decide to buy or sell gold coins. If you need to cash in to fund another investment and balance your portfolio, it’s time to take the profits. However, gold often does best in the long-term and it can be risky to sell off your insurance policy. You may want to hold out for higher gold prices in the long-term rather than opt for marginal gains today.

Trade Gold Coins for Silver

When you trade in your gold coins, you don’t necessarily have to do it for cash. With online gold sellers like Silver Gold Bull, you can easily exchange gold coins for silver or vice versa. Why would investors swap gold for silver? Both precious metals tend to move in tandem, but silver rises and falls at a greater rate than gold. On a positive upswing for metals, you may want a higher exposure to silver, but then trade silver for gold coins to protect yourself from downsides.

With these rules in mind, you’re ready to sell your gold coins.

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June 18, 2018, 11:21 am

The Most Successful Investments Made by Poker Pros Revealed

by: The Financial Blogger    Category: Investment, Market and Risk


Image: Pixabay.com
Caption: From small poker acorns do big businesses grow

What’s the best way of turning money into even more money? Investing it. That’s what some of the legends of the poker industry have successfully achieved with their profits made at the tables. When you consider just how much prize money is on offer in the poker industry today, it’s unsurprising the very best in the business choose to diversify their profits by investing in initiatives outside of Texas hold’em. Last year’s World Series of Poker (WSOP) Main Event saw the third-highest prize pool in the history of poker tournaments, with $67,877,400 up for grabs. The top ten professionals in terms of live career earnings include the enigmatic Phil Hellmuth, who just so happens to be one of the shrewder investors of his poker winnings, as we will explain in more detail shortly.

There are many poker icons that have successfully diversified their poker fortunes into even more profitable business ventures. If you’re familiar with the world of poker, you’ll almost certainly have heard of this trio of poker gods-turned-entrepreneurs:

Jerry Buss: Successful owner of the LA Lakers

For a number of years, entrepreneur and philanthropist, Jerry Buss was a high-stakes Texas hold’em cash game player. He had been a major player in the Los Angeles and Las Vegas card rooms and then became a regular entrant in the World Series of Poker (WSOP) events in the 1990s. Buss’ best-ever finish was a third-place finish in a seven-card stud WSOP tournament, followed by a runner-up finish in a World Poker Tour (WPT) invitational event back in 2003. A charismatic individual, Buss was also invited to play on NBC’s Poker After Dark television series, as well as the High Stakes Poker series on GSN.

Using much of the revenue he had generated from the cash game and tournament poker tables in the late 80s and early 90s, Buss then invested heavily in professional sports teams in Los Angeles. He spent $67.5 million on acquiring the World TeamTennis side, the LA Strings, the NBA giants, the LA Lakers and the NHL outfit, the LA Kings. Undoubtedly, Buss’ most successful investment was his purchase of the Lakers, where he was able to attract a string of big-name stars to the Lakers roster; namely Magic Johnson, Shaquille O’Neal and Kobe Bryant. It was his desire to provide world-class entertainment for the fans that led in the Lakers’ ‘Showtime’ era. His financial contribution to basketball was marked by an induction to the Basketball Hall of Fame in 2010 prior to his 2013 death.

Dan Harrington: Real estate riches with Anchor Loans

72-year-old Dan Harrington, nicknamed ‘Action Dan’ in the poker fraternity, is best known for winning the WSOP Main Event in 1995. Harrington had been a successful bankruptcy lawyer for a number of years prior to entering the world of poker and business. Harrington learnt his trade playing poker at the Mayfair Club in the 1980s, sitting alongside some of the other household names of professional poker in Erik Seidel and Howard Lederer. Harrington made the final table of the 1987 WSOP Main Event, finishing in sixth place and started to generate solid revenues from his love of tight-conservative Texas hold’em.

Harrington began to dabble in real estate and stocks and shares before co-founding an enterprise of his own with two of his friends in the world of poker, Stephen Pollack and Jeff Lipton. In 1998, Anchor Loans was established, providing short-term loans to ‘fix-and-flip’ real estate investors. The company has funded more than $5.3 billion in short-term loans in its 20 years of business. Harrington retired from the business in 2010 but is still a shareholder in the company. Harrington has a long and proud history as a poker author, publishing a string of books on online and offline cash games in Texas hold’em no-limit, suitable for beginners and intermediate players. Although he penned a book on ‘Modern Tournament Poker’ in 2014, he hasn’t gone as far as writing about some of the latest poker room incarnations such as SNAP poker that is fast-fold and offers instant gratification for millennial players. Although Harrington’s live tournament earnings are barely a quarter of Phil Hellmuth’s, it’s obvious that Harrington has diversified his poker revenues impressively into real estate and publishing.

Phil Hellmuth: Book publisher extraordinaire


pp-ed-how-good-phil-hellmuth” (CC BY 2.0) by Chingster23

Caption: Poker Brat turned publisher for the sharp-tongued American

Phil Hellmuth is one of the larger-than-life characters in the world of professional poker. The aptly-named ‘Poker Brat’ has never taken kindly to losing at anything in life, most certainly not at the poker tables, and his will to win has helped him become one of the most respected poker pros on the tour. As of last year, his live tournament earnings were in excess of $21 million, sitting eighth in the all-time winnings list. Hellmuth also holds a record 14 WSOP gold bracelets and also holds the record for the most amount of cashes at WSOP events, standing at 108. These landmarks further serve to commemorate the commitment and passion Hellmuth has held for his poker craft through the years.

Hellmuth has always had a passion for telling stories and, in 2009, as the poker boom started to decline somewhat, he opted to set up his own publishing house with a view of allowing fellow poker professionals to tell their own accounts of life at the tables and away from the felt. The book, Deal Me In: 20 of the World’s Top Poker Players Share the Heartbreaking and Inspiring Stories of How They Turned Pro, written by Stephen John and Marvin Karlins, has proven to be extremely successful among the poker community. Amateurs and semi-pros alike have found it particularly inspiring to see how even the world’s most powerful poker stars had to work hard to build their bankrolls from the outset. It also reinforces that those who have the courage to dream big can, and often will, succeed.

Poker is a gruelling and demanding profession. Even those who stick at it for many decades will look to have downtime away from the tables to keep fresh. What better way for successful poker players to take their heads out of the game than to invest some of their riches in generating more income on the side.

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April 15, 2018, 10:38 am

Day trading for beginners – What you should know

by: The Financial Blogger    Category: Investment, Market and Risk

“Being a rookie trader, it’s easy to forget the basic set of rules when it comes to day trading.” Tom Soyer, a senior financial analyst at Olsson Capital said in a conference held recently.

According to Soyer, a high percentage of day traders give up when they lose out on a trade. The main reason for this, however, is that these new traders have not taken the basic trading rules to heart. To make it easier for rookie day traders to begin a trading career, Soyer composed a list of basic rules to take into account when trading for the first time.

You are never too old to learn something new

It does not matter how long you have been dabbling in day trading, you always need to keep a close eye on trading publications. These can include chart, reports and financial records of the type of trading you are doing.

Don’t expect to become rich overnight

Day trading, although done in short timespans, should not make you think that you’d become rich overnight. As a new trader, you should be prepared to lose out on a few trades. Should you complete your day of trading and be able to cash out a substantial amount of money, do not expect that every day will go like that.

When it comes to margin trading

If you choose to borrow money from your broker to give your trade a bigger boost, you need to take into consideration that this type of margin trading holds its own risk. Should your trade be successful, you walk out with better results as a result of the money you borrowed. But if the trade goes south, your loss will be even bigger than when trading without borrowing.

Don’t trade according to what you hear

The media is full of opinions and speculation. Don’t fall victim to its claws. Yes, that’s easier said than done as we as human beings tend to get emotional about these type of things. Before you make a trade, know what you want from the trade and have a pre-set plan for how you want the trade to go. If you hear that the market is about to fall, make sure of the fact, read your charts and should it be true, exit the trade to minimize losses.

Keep your number of stocks low

If you’re a day trader that is just beginning out, it is better to keep the number of stocks you trade to a maximum of two per day. This gives you the ability to spot new opportunities much easier and keep your wits about you when keeping an eye on the markets you trade on during the day. As you gain more experience, you can increase your trades per day accordingly.

Don’t rush your trades

When the market opens in the hours of the morning, prices tend to be volatile as many traders are ready to execute their trades right away. As a beginner trader, it is better to wait for at least 20 minutes before making a trade as, by this time, the market should begin to settle again. Towards the end of the day, trade price volatility will be higher again as ,by this time, traders want to close their trades for the day. That being said, the best time for a rookie trader to execute trades would be at midday.

Keep your trading money aside

It is a good idea to keep the money you intend to trade with aside. That way, you won’t trade with the money that is intended for other expenses. As a new trader, you will have to be prepared to cut your losses with some of the money you have set aside as not every trade will fall in your favour.

If you follow the above-mentioned set of rules while developing a trading strategy, it is Soyer’s opinion that day trading will be much easier for rookies. Since new traders are still learning the tricks of the trade, it is better to play it safe before jumping into the deep and possibly drowning in trades you make without truly understanding what you are doing.

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March 15, 2018, 12:52 pm

Solutions to the problems you may face while trading online

by: The Financial Blogger    Category: Investment, Market and Risk,Trading

binary options, trading binaries, binary options trading

The process of online business is fast and cheap. You can do business without having to talk to live representatives without having to settle from your home comfortably. According to a senior financial analyst at Wilkins Finance, the speed and ability to unlock online business is fully related to support technology, which may fail at the very least. Other possible issues are the federation for customer service and investment decisions. The problems discussed below are to make you aware of what bad can possibly happen so you can have a backup ready.

Technical problems

The online business merchandise is just as good as server and software. Highly volatile business days can slow down processing processes and slow down the information process. If you do not have the necessary purchases and sales firms, especially in the fast-moving markets, you will find significant losses. Software widgets can end up delays in cost pricing and status information. This may result in business losses as you enter orders due to delays in false price or ordering reports.

Investors depend on internet and mobile services providers to investigate information research and business locations. If you do not have access to the internet access point, you will not get the exact information or select the key business locations. So to overcome this problem, you should have a backup device always ready and an alternative internet connection.

Customer service

Online brokers are a low-cost expense structure that allows them to submit leave to the commissions. You may be waiting for a telephone call for a long time, especially in non-profit markets, as well as trained and traded traders. Also, you cannot provide some commands through the phone, such as Release the Optional Options Commands. Brokers can prioritize affordable buyers and active businesses, which can expand the waiting time for middle investors.

Administrative measures such as exchange of funds between accounts or sending posters between brokers and long-term business opportunities may be possible. However, the brokerage firms that offer 24/7 customer service will be able to assist you whenever you are in need.

Feedback mechanisms

The business of online trading is that you are an investor, and you depend upon a broker. Online brokers usually do not offer sales recommendations. You need to save time for research, such as reviewing financial statements about corporate websites, investment links, and price charts on the financial website. You should consider double-budget funds that offer professional management and diversity at reasonable prices if you do not have a timely accounting account. In short, you will need some time to invest in your online trading business. Moreover, choosing the right broker will also prevent these problems.

If you have problems with your service, then you should have internet backup in your workbook or public library by employing regular administrative hours. For example, if goods are between transactions between accounts. Place market commands in fast-moving markets because these orders can be used instead of inappropriate prices. Review the general information on ideas about ideas before opening different brokers, service levels, and online accounting.

Sustainable business

Online investments can be dangerous for nonprofit investors because these emotions are easy to respond and can make a lot of investment decisions based on the raged emotions. In real equity, this stock should be held for a longer period of time, to make the Starter Market profitable for a gradual growth. If a single investor often sells a counter to the current events and economic conditions, then it may have benefited from long-term economic benefits.

Taxes

Easy access to online business can be the finest results of investment on investment.  You must pay 15% of investment profits for more than one year, but pay an ordinary income tax that is one year or less. Your income tax will be up to 35 percent. Therefore, it is a taxable ability to keep a long-term investment profile in the long run. The trick is also to avoid the tax rule by keeping the stocks for short periods of time.

It can be concluded that like every other business, in online trading as well you might face problems. However, one thing to be kept in mind is that every problem comes with a solution. Instead of panicking, work on improving the situation.

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