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Mine the best tax breaks for investing in gold

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in Leaders & Managers,Management Training

Are you a gold bug? You may think the time is right to invest in gold or other precious metals (such as silver) as a hedge against inflation or for greater purchasing power. Of course, the price of gold has been known to fluctuate widely, so you need to pay close attention to the ups and downs.

When you sell an investment in gold, the difference between the sales price and your basis is taxed as a capital gain or loss. If you've held the gold for more than a year, any gain is treated as long-term gain.

Strategy: Invest in gold inside your retirement plan. Unlike the maximum federal tax rate of 15 percent on most other long-term gains, the maximum tax rate on long-term gains from precious metals is 28 percent.

By using retirement plan funds to invest in gold, instead of your personal funds, you can avoid a big tax hit on a sale. Of course, due to the speculative nature of gold, you don't want to go overboard. ...(register to read more)

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