If I understand correctly, bullion invented after the IRS created their "reportable items list" in the 1980s are exempt from income taxes. So certain gold/silver coins such as eagles/buffalos/philharmonics/etc. can be sold for a gain without requiring any capital gains tax, since these bullion were not in existence at the time the list was created. Furthermore, there is no quantity trigger...it is of no relevance whether you sell one coin or ten thousand coins. So theoretically, assuming one lives in a legal tender state like Utah/Wyoming, these are tax-free investments.
But what if one runs a business that only accepts payment in these exempt coins, instead of federal reserve notes? Let's say I start a car wash that clears a million dollars annually after expenses. If I was paid in dollars, I would owe the IRS a ton of money as usual. But if all my customers paid with exempt coins, would I owe any income tax at all?
What I'm getting at here is not whether the exempt coins are tax-free investments, but if they are also tax-free when treated as money.
Another angle I thought of, if they are not completely tax-free, is that they are taxed at face value. So for example, if my business earns 500 one-ounce gold eagles for the year, and assuming the price of gold was static at $1200 all year, then I earned $600k. But the face value of those coins are 50 dollars, so if I was taxed at the face value, my taxable income would only be $25k.
If any of this is even remotely true, and assuming one's business could survive transacting in gold/silver, then for some people, Utah/Wyoming might be the best tax havens on earth!
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