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Visit  www.1031Podcast.com  for the Latest Information About 1031 Tax Exchanges…
1031 EXCHANGES OF GOLD  <ul><li>Section 1031 allows you to  defer  all of the federal capital gains  taxes  when you sell ...
WHAT IS THE IDEA BEHIND SECTION 1031? <ul><li>Exchange or “ swap of property ” rather than a “ sale and purchase ”. </li><...
TWO MAIN REQUIREMENTS  <ul><li>IRC §1031 (a)(1) states “no gain or loss shall be recognized on the exchange of property  h...
NUMISMATIC vs. BULLION COINS <ul><li>Numismatic type coins  have value over and above their weight of their raw precious m...
WHAT IS  NOT  LIKE-KIND <ul><li>Currency (Cash) ≠ Investment Coins   </li></ul><ul><ul><ul><li>Treasury Regulation 1.1031(...
WHAT IS LIKE-KIND <ul><li>Gold Bullion Type Coins = Gold Bullion Type Coins  </li></ul><ul><ul><li>Rev. Rul. 76-214 (1976)...
Open Question <ul><li>Are  Gold  numismatic type coins like-kind to  Sliver   numismatic type coins? </li></ul><ul><li>Are...
NEED MORE INFORMATION? <ul><li>Call the  1031 HOTLINE </li></ul><ul><li>Toll-Free At:  1-888-308-1031   </li></ul><ul><li>...
Copyright  www.1031Podcast.com <ul><li>Legal Notice </li></ul><ul><li>Any tax information contained in this communication ...
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1031 Podcast Presentation {1031 Exchanges Of Gold & Silver}

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1031 Exchange
Gold Coins
Silver Coins
Bullion Type Coins
Numismatic Coins
Tax Free Exchange
1031 Property Exchange
1031 Exchange Rules
Section 1031
Qualified Intermediary
Jeff Peterson
Professor 1031
(c) 2009 Jeff Peterson all Rights Reserved

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1031 Podcast Presentation {1031 Exchanges Of Gold & Silver}

  1. 1. Visit www.1031Podcast.com for the Latest Information About 1031 Tax Exchanges…
  2. 2. 1031 EXCHANGES OF GOLD <ul><li>Section 1031 allows you to defer all of the federal capital gains taxes when you sell gold, silver and precious metals that have been held for “ Investment ” or “ Business ” purposes. </li></ul>Copyright www.1031Podcast.com
  3. 3. WHAT IS THE IDEA BEHIND SECTION 1031? <ul><li>Exchange or “ swap of property ” rather than a “ sale and purchase ”. </li></ul><ul><li>Not cashing out. </li></ul><ul><li>Continuation of Investment. </li></ul><ul><li>Stimulate the Economy </li></ul>
  4. 4. TWO MAIN REQUIREMENTS <ul><li>IRC §1031 (a)(1) states “no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment .” </li></ul>Copyright www.1031Podcast.com
  5. 5. NUMISMATIC vs. BULLION COINS <ul><li>Numismatic type coins have value over and above their weight of their raw precious metal content. These coins are typically more rare and have historical , artistic or aesthetic significance that gives them a higher price. </li></ul><ul><ul><li>Check out 31 USC 5112(g) “All coins minted under subsection (e) of this section shall be considered to be numismatic items”. {Subsection “e” deals with 31.103 Gram American Eagle} </li></ul></ul><ul><li>Bullion type coins have their value determined primarily on the basis of their metal content . They have little or no value beyond that of their precious metal content or weight. </li></ul>
  6. 6. WHAT IS NOT LIKE-KIND <ul><li>Currency (Cash) ≠ Investment Coins </li></ul><ul><ul><ul><li>Treasury Regulation 1.1031(a)-1(a)(2) (Money ≠ Numismatic or Bullion Coins) </li></ul></ul></ul><ul><li>Real Property ≠ Coins (Personal Property / Chattel) </li></ul><ul><ul><ul><li>Rev. Rul. 79-143 (1979) </li></ul></ul></ul><ul><li>Numismatic Type Coins ≠ Bullion Type Coins </li></ul><ul><ul><ul><li>Rev. Rul. 79-143 (1979) $20 US gold coins (numismatic type) could not be exchanged tax-deferred with South African Krugerrand gold coins (bullion type). Not like-kind . “…Represent totally different types of underlying investment”. </li></ul></ul></ul><ul><li>Gold Bullion Type Coins ≠ Silver Bullion Type Coins </li></ul><ul><ul><ul><li>Rev. Rul. 82-166 (1982) “…Silver and gold are intrinsically different metals and primarily are used in different ways”. </li></ul></ul></ul>Copyright www.1031Podcast.com
  7. 7. WHAT IS LIKE-KIND <ul><li>Gold Bullion Type Coins = Gold Bullion Type Coins </li></ul><ul><ul><li>Rev. Rul. 76-214 (1976) </li></ul></ul><ul><ul><li> Mexican 50-peso noncurrency bullion type coins were exchanged for Austrian 100-corona noncurrency bullion-type coins. NOTE: Not a dealer / not inventory. </li></ul></ul><ul><li>Gold Bullion Type Coins = Gold Bullion Type Coins </li></ul><ul><ul><li>Rev. Rul. 76-214 (1976) Mexican 50-peso non-currency bullion type coins were exchanged for Austrian 100-corona non-currency bullion-type coins. NOTE: Not a dealer / not inventory. </li></ul></ul><ul><li>Gold Bullion = Gold Bullion Type Coins </li></ul><ul><ul><li>Rev. Rul. 82-96 (1982) Traded gold bullion for Canadian maple leaf gold coin </li></ul></ul>Copyright www.1031Podcast.com
  8. 8. Open Question <ul><li>Are Gold numismatic type coins like-kind to Sliver numismatic type coins? </li></ul><ul><li>Are they “used” for the same purpose? {Treasury Regulation 1.1031(a)-1(c)(1) } </li></ul><ul><ul><li>Like-kind means the same “Nature or Character”. </li></ul></ul><ul><ul><li>TAM 200035005 (2000) </li></ul></ul><ul><ul><li>FCC Radio Station License = FCC T.V. Station License </li></ul></ul><ul><li>Treasury Regulation 1.1031(a)-2(c)(3) Example Intangible Personal Property describing a copyright on a novel for a copyright on a song is not like-kind. </li></ul><ul><li>In California Federal Life Insurance Co. v. Commissioner of Internal Revenue , 76 T.C. 107 (1981), artwork of one medium (lithographs) was determined not be like-kind with artwork of other medium. </li></ul><ul><li>Section 1031(f) Livestock of different sexes are not like-kind. </li></ul>Copyright www.1031Podcast.com
  9. 9. NEED MORE INFORMATION? <ul><li>Call the 1031 HOTLINE </li></ul><ul><li>Toll-Free At: 1-888-308-1031 </li></ul><ul><li>Or Visit </li></ul><ul><li>www.1031Podcast.com </li></ul>Copyright www.1031Podcast.com
  10. 10. Copyright www.1031Podcast.com <ul><li>Legal Notice </li></ul><ul><li>Any tax information contained in this communication is not intended, and cannot be used by the taxpayer or any other person, to avoid any civil or criminal tax penalties which the Internal Revenue Service or another governmental agency may impose on the taxpayer or any other person for acting in reliance upon information contained in this communication. No attorney/client relationship shall be created by this webpage or any other communication. </li></ul><ul><li>Call the 1031 HOTLINE </li></ul><ul><li>Toll-Free At: 1-888-308-1031 </li></ul>

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