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Do I have to report the offshore or on-shore Gold Vault account anywhere to the IRS or just when I sell?
Anonymous2 views3 answers
I was curious to know how precious metals vaults or even storage in my safe or safe deposit box will affect my rights and requirements to report to the IRS. I have some gold bars I have been buying each week just as something to do. There is a company called Citadel (
http://www.cgdsi.com/
) that I can have my gold bars I have in my possession shipped to as well as any gold/precious metals I obtain in the future stored at instead of sent to me. There is also the option for the same type of precious metals storage in offshore vaults. I don't want to be buying all this gold/silver to just be seized because I didn't' report something right nor do I want the IRS to come and get it for any reason either (I work for our family business so the IRS is always lurking around)....I am not trying to hide anything, just want to know what direction would be the best. I would like to just buy the gold and have stored in one of the over-seas vaults in London or Shanghai but I don't want to get Uncle Sam involved either.
It depends, and it can become complicated. Directly held gold is not reportable on the FBAR or 8938, but be careful to ensure that it is truly directly held gold. Many people think they have directly held gold, when what they have is really certificates as part of a custodial account. Gold which you would hold via a certificate is a foreign financial asset and is subject to reporting. Additionally, sales of directly held gold are reportable.
Given the IRS enhanced enforcement of offshore reporting, you should seek advice from a tax attorney regarding how to structure your holdings and report correctly.
This is not the type of question suitable for a public forum like this. However, I would guess that the gold bars held in a fiduciary account offshore would qualify as an item subject to reporting on your tax return as an account valued at $10,000 or more, and also subject to FBAR reporting. You ought to discuss this situation with a tax attorney, who can review all your facts and proposals to give you the best understanding of your options and consequences.
As Mr. Buck points out, you really don't want to be discussing this in a public forum on the internet. Do yourself a favor and consult with a local tax lawyer.
