Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24
RECESSION When Yield Curve Uninverts - 8th Sep 24
Sentiment Speaks: Silver Is Set Up To Shine - 8th Sep 24
Precious Metals Shine in August: Gold and Silver Surge Ahead - 8th Sep 24
Gold’s Demand Comeback - 8th Sep 24
Gold’s Quick Reversal and Copper’s Major Indications - 8th Sep 24
GLOBAL WARMING Housing Market Consequences Right Now - 6th Sep 24
Crude Oil’s Sign for Gold Investors - 6th Sep 24
Stocks Face Uncertainty Following Sell-Off- 6th Sep 24
GOLD WILL CONTINUE TO OUTPERFORM MINING SHARES - 6th Sep 24
AI Stocks Portfolio and Bitcoin September 2024 - 3rd Sep 24
2024 = 1984 - AI Equals Loss of Agency - 30th Aug 24
UBI - Universal Billionaire Income - 30th Aug 24
US COUNTING DOWN TO CRISIS, CATASTROPHE AND COLLAPSE - 30th Aug 24
GBP/USD Uptrend: What’s Next for the Pair? - 30th Aug 24
The Post-2020 History of the 10-2 US Treasury Yield Curve - 30th Aug 24
Stocks Likely to Extend Consolidation: Topping Pattern Forming? - 30th Aug 24
Why Stock-Market Success Is Usually Only Temporary - 30th Aug 24
The Consequences of AI - 24th Aug 24
Can Greedy Politicians Really Stop Price Inflation With a "Price Gouging" Ban? - 24th Aug 24
Why Alien Intelligence Cannot Predict the Future - 23rd Aug 24
Stock Market Surefire Way to Go Broke - 23rd Aug 24
RIP Google Search - 23rd Aug 24
What happened to the Fed’s Gold? - 23rd Aug 24
US Dollar Reserves Have Dropped By 14 Percent Since 2002 - 23rd Aug 24
Will Electric Vehicles Be the Killer App for Silver? - 23rd Aug 24
EUR/USD Update: Strong Uptrend and Key Levels to Watch - 23rd Aug 24
Gold Mid-Tier Mining Stocks Fundamentals - 23rd Aug 24
My GCSE Exam Results Day Shock! 2024 - 23rd Aug 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Beat the Coming ‘Taxflation’ Tsunami with Precious Metals

Commodities / Gold & Silver 2020 Dec 15, 2020 - 06:11 PM GMT

By: MoneyMetals

Commodities

The final weeks of the tumultuous year that has been 2020 present opportunities for investors to get their financial houses in order ahead of the New Year.

Nobody knows what 2021 will bring. But new political risks are likely to emerge – including the threats of higher taxes and a more punitive IRS.

With control of the U.S. Senate still up for grabs pending runoff elections in Georgia next month, and the final outcome of the presidential race still in dispute, an environment of uncertainty will reign for the remainder of the year.

President Donald Trump continues to pursue a longshot campaign to rescind fraudulent election results in multiple states through the courts or state legislatures.


The U.S. Supreme Court may ultimately determine the fate of Trump’s legal challenges.

We’ll leave the Constitutional questions to the legal experts.

Regardless of which side you’re on, though, you should be prepared for the possibility that Joe Biden and Kamala Harris do indeed take power and deliver on their promises to increase spending and raise taxes on millions of Americans.

Biden intends to make former Federal Reserve chair Janet Yellen his Treasury Secretary. Yellen would presumably work closely with former colleague and current Fed chair Jerome Powell to carry out the government’s and the central bank’s priorities in tandem.

It isn’t difficult to imagine an unprecedented level of coordination between fiscal and monetary policy. That may well be the point of her nomination.

The presumptive Biden administration will have twin objectives of raising tax revenues and raising inflation rates to help eat away at the real value of soaring government debt. Yellen is well suited to these “taxflation” objectives.

Janet Yellen opposed President Trump’s 2017 tax cuts and supports a “carbon tax.” She will undoubtedly be on board with the Biden/Harris agenda of eliminating the Trump tax cuts on “day one.”

If that happens, it will mean a $2,000 tax hike on a typical middle-income family of four. And that’s just for starters.

Biden also wants to double the top capital gains rate to 40% and force all investors to pay capital gains taxes at ordinary income tax rates.

Presumably, that would also apply to precious metals investors whose long-term gains on gold and silver coins are currently taxed at a top “collectibles” rate of 28%.

Even if a Republican-controlled Senate thwarts Biden’s most ambitious tax hiking plans, his Treasury Secretary will be able to implement taxpayer-adverse regulatory changes and direct more funding to the Internal Revenue Service for enforcement actions.

Yellen can be expected to push for more IRS audits of taxpayers and stiffer penalties for inaccuracies on returns. It’s another way to “bring home the bacon” for the Washington, D.C. swamp.

A Precious Metals IRA Is a Wealth Protection ‘Double Play’

Now is the time for investors to think strategically about how they might protect themselves – in 2021 and beyond – from the twin threats of inflation and taxation.

One potentially powerful strategy to consider is to sock away wealth in a tax-advantaged retirement account funded with physical precious metals. A time-tested way to hedge against currency depreciation combined with a shelter from ruinous taxation is a wealth protection double play!

In some cases, a traditional IRA contribution – and contributions to other retirement accounts such as 401(k)s and 403(b)s may be tax deductible in the year made (consult with your tax advisor), so maxing out contributions for 2020 is a great year-end tax strategy.

If you have already maxed out your 2020 IRA contributions, it’s not too early to be thinking about getting a head start on 2021. By making those contributions as soon as possible in the New Year, you can maximize the time period those assets enjoy tax deferral.

For 2021, the IRA contribution limits for individuals ($6,000) and those over age 50 ($7,000) will be the same. But the income thresholds for being able to deduct your contributions or contribute to a Roth IRA are both bumped up slightly.

Not only can you purchase, hold, and sell real precious metals inside a tax-advantaged Self-Directed Precious Metals IRA, but also you can withdraw your bullion and take direct physical possession of it under normal IRA distribution rules.

The IRS does impose certain restrictions on size and purity, but a wide variety of bullion coins, rounds and bars are eligible. In addition to gold and silver, you can even hold physical platinum and palladium within an IRA.

To get started in funding a Self-Directed Precious Metals IRA, choose a reputable account trustee then arrange for a bullion dealer such as Money Metals Exchange to ship your IRA-eligible bullion to your designated depository. (Money Metals Depository is approved by several IRA trustees such as New Direction and Mountain West.)

What if you have an existing IRA but don’t want to make new cash contributions to fund a precious metals purchase?

A conventional IRA, whether Roth or traditional, can be converted to a Self-Directed Precious Metals IRA. Switching is easy. Most providers can enroll you right online and work directly with your existing IRA custodian to transfer funds.

Your broker may have never told you about these fantastic options (for obvious reasons). But they are totally legitimate.

In an environment such as we could be heading into, where conventional paper assets begin to underperform and political risks accelerate, physical precious metals shielded from taxes could be among the few true safe havens.

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2020 Stefan Gleason - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in