T
the sugar monster
Assuming the end of the dollar doesn't turn into a scorched earth, scene from Independence Day, hellhole, there are people that believe the precious metals will be subject to the 28% capital gains tax. (aka the fed government will still be around)
That author makes no mention of silver/gold fundamentals and uses only historical data and thus thinks gold/silver are 'overvalued' even though he predicts a hyperinflation/depression. But it's a scary example of how the government will try and tax away our livelihood.
So my question is:
If this does happen, how can we buy real estate without the government stealing our wealth? Example: If I want to buy an apartment complex with silver, is there any way to do it without Uncle sam raping me? I understand that there is a black market for almost all other things, but real estate seems tricky.
Also, there are those that predict a 90% tax on precious metals and I read that thread, but it didn't seem to address buying real estate on the Down Low. Any ideas are appreciated.
- http://www.johntreed.com/liquidhardassets.htmlIn the interest of full disclosure, I do not recommend precious metals including “junk silver.” I just use it here to illustrate the principle of liquid hard assets. One reason I oppose precious metals at present is the tax law. If you bought a 1964 dime for $1.30, then used it to buy a $90,000 cheeseburger, the McDonald’s is required to submit a Form 1099B (for barter or bullion—in this case, the dime would be both) with the IRS. That would reveal you had a capital gain of $117,000 - $1.30 = $116,998.70. Capital gains are usually taxed at 15%, but not precious metals, art, or collectibles. Those are taxed at 28%. So you would owe $116,998.70 x 28% = $32,759.64 in taxes. Don’t feel too bad though. The minimum wage at that point would probably be $7.25 x 300 x 300 = $652,500 an hour.
One suspects that the tax law would be changed during hyperinflation, but as it currently stands, capital gains are not indexed.
That author makes no mention of silver/gold fundamentals and uses only historical data and thus thinks gold/silver are 'overvalued' even though he predicts a hyperinflation/depression. But it's a scary example of how the government will try and tax away our livelihood.
So my question is:
If this does happen, how can we buy real estate without the government stealing our wealth? Example: If I want to buy an apartment complex with silver, is there any way to do it without Uncle sam raping me? I understand that there is a black market for almost all other things, but real estate seems tricky.
Also, there are those that predict a 90% tax on precious metals and I read that thread, but it didn't seem to address buying real estate on the Down Low. Any ideas are appreciated.