# Is gold bullion taxable?



## sags (May 15, 2010)

From another thread on safety deposit boxes.........I got to wondering if gold coins or other forms of bullion is taxable?

If you have a pile of gold in a safety deposit box and pass away............would it be taxable?

If you have a pile of gold in a safety deposit box, take it out and then pass away..........would it be taxable?

If it is taxable...........can you also claim a loss if you sell it for a loss?


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## leoc2 (Dec 28, 2010)

These links may help:
http://www.financialpost.com/Cash+gold+exempt+from/2164330/story.html

http://www.rlb.ca/rlb-newsletter/timely-opportunities/tap-into-the-lustre-of-gold-wisely.html

https://www.kitcomm.com/archive/index.php?t-99373.html


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## Xoron (Jun 22, 2010)

What if you have NO idea what the original purchase was (ie you have no idea what the ACB is)? From a tax perspective, how can you claim capital gains if you have no idea what it was purchased for? (A friend is in this position from an inheritance)


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## MoreMiles (Apr 20, 2011)

Xoron said:


> What if you have NO idea what the original purchase was (ie you have no idea what the ACB is)? From a tax perspective, how can you claim capital gains if you have no idea what it was purchased for? (A friend is in this position from an inheritance)


So it was acquired for free by your friend... the cost basis is $0, right?
What if the object was bought in a flea market, with the vendor no where to be found now. How do you produce a receipt?


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## birdman (Feb 12, 2013)

Its a gift, not taxable.???? (I hope)


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## cardhu (May 26, 2009)

sags said:


> Is gold bullion taxable?


Capital gains are taxable ... it makes no difference whether the gain was made on gold bullion, stocks, real estate, or a box of old baseball cards you keep in a shoebox under your bed.



sags said:


> If you have a pile of gold in a safety deposit box and pass away............would it be taxable?
> If you have a pile of gold in a safety deposit box, take it out and then pass away..........would it be taxable?


Safety deposit boxes are not tax shelters ... whether the gold is inside or outside of a safety deposit box is irrelevant ... assets are deemed disposed upon death (unless you have a surviving spouse to roll the assets over to) ... upon the deemed disposition, capital gains become taxable. 



sags said:


> If it is taxable...........can you also claim a loss if you sell it for a loss?


Capital losses can be used to offset capital gains.


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## cardhu (May 26, 2009)

Xoron said:


> What if you have NO idea what the original purchase was (ie you have no idea what the ACB is)? From a tax perspective, how can you claim capital gains if you have no idea what it was purchased for? (A friend is in this position from an inheritance)


Historic gold prices are well documented and widely available. Surely your friend must have some idea how long ago he received this inheritance? The value at that time would be his ACB.


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## MoreMiles (Apr 20, 2011)

Yup I remember. It was bought during the US debt crisis at the peak of $1750 / oz :chuncky:


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## OhGreatGuru (May 24, 2009)

Xoron said:


> What if you have NO idea what the original purchase was (ie you have no idea what the ACB is)? From a tax perspective, how can you claim capital gains if you have no idea what it was purchased for? (A friend is in this position from an inheritance)


From the point of view of your friend, he should have some idea of when he received it, and can estimate his "deemed acquisition cost" from the historical market price of the bullion/coins at that time. This would be better (for him) than using a deemed acquisition cost of $0.

Whether or not the executors of the dear departed paid the estate's share of capital gains on the gold before giving the inheritance to your friend is another issue. If it was long enough ago, or the amount is not large, it is unlikely that CRA would go after either the estate trustees or your friend for the estate's unpaid taxes.


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## alingva (Aug 17, 2013)

taxable if you sell it and the value is over $1000 and it is 0.999 gold. otherwise it is not, it would count a personal item. Does not matter if it is a gift, you would sell it as an investment and has to pay tax. The same as if you would receive a mutual fund investment from him


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