"short-term capital gain" vs "collectible gain" question...
Posted: Mon Jan 20, 2014 3:51 pmI was considering doing some spot silver trading on the Forex (XAG/USD) and I was trying to determine what my federal tax rate would be. At the Northwest Territorial MInt website I came across the below question & answer which still doesn't clear this up for me. If I was to do day trading on the Forex would all my transactions be considered "short-term capital gains" as opposed to "collectible gains" or "long-term capital gains"? And if this is the case would I simply add my year's total Forex profits (thinking positive) to my regular employment income for tax purposes? And if the day trading of silver bullion is indeed considered "short-term capital gains" what is the current federal tax rate on "short-term capital gains? I hope it is less than the 28% "collectibles rate" mentioned below. Any help would be greatly appreciated, Don.
(Northwest Territorial Mint):
What tax rate applies if I have a taxable gain from the sale of my precious metals?
Gain from the sale of precious metals that are held for 1 year or less is a short-term capital gain and is taxed at your ordinary income tax rate. If you’ve held your metals for over 1 year, you instead have a collectibles gain, a form of long-term capital gain. Collectibles gain is taxed at a maximum rate of 28% in 2012.
(Northwest Territorial Mint):
What tax rate applies if I have a taxable gain from the sale of my precious metals?
Gain from the sale of precious metals that are held for 1 year or less is a short-term capital gain and is taxed at your ordinary income tax rate. If you’ve held your metals for over 1 year, you instead have a collectibles gain, a form of long-term capital gain. Collectibles gain is taxed at a maximum rate of 28% in 2012.