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robertmbeard

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Reply with quote  #46 
If more of our time is wasted by attempting a New&Improved Bullion Direct with Nucleo exchange, I agree with tboll's idea of listing the "shares" of the New&Improved BDI.  I would be the first to liquidate my shares for whatever pennies on the dollar I can get before the new company goes bankrupt...
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plankton

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Reply with quote  #47 
Taxes should be interesting.  I've never filed 'loss from theft' before.  I know a bit early for that but that will be the next active thread.
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jim249

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Reply with quote  #48 
I would think that you would have to wait until the case is settled before taking any tax write offs. Then you are limited to $3k a year until your total losses are used up. The losses would be your initial investment less any money returned.
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JG

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Reply with quote  #49 
Quote:
Originally Posted by jim249
I would think that you would have to wait until the case is settled before taking any tax write offs. Then you are limited to $3k a year until your total losses are used up. The losses would be your initial investment less any money returned.


That's if it is a capital loss. There are other rules for theft losses.

For an idea of what to expect, check out http://about.ag/TulvingTax.htm that I wrote for Tulving. The Bullion Direct situation is different (e.g. it might be considered a Ponzi scheme, Tulving didn't do storage). In any case, it gets fairly complex.

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jim249

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Reply with quote  #50 
I would think as of right now it would be a capital loss until a person or the corporation is tried in court and convicted of theft. It could turn into a can of worms.
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tboll

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Reply with quote  #51 
That gold capital loss can be used to cancel out all your capital gains as well as $3,000 from your income.  If you want to take advantage of some stock gains, might not be a bad time to do it (of course a better time might have been a week or 2 ago but hey, market is looking better today).  Of course, the disclaimer... I am not a CPA, accountant or tax professional, etc. (so I could be wrong).

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JG

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Reply with quote  #52 
Quote:
Originally Posted by jim249
I would think as of right now it would be a capital loss until a person or the corporation is tried in court and convicted of theft. It could turn into a can of worms.


It might be best to wait until tax time to figure it out (I should have a lot of information by then).

I believe a drawback to the capital loss is that you can only take it when the investment becomes worthless, which is not the case here (e.g. you would have to sell your claim to someone).

So there is not an easy solution. And the theft loss does not require a criminal conviction IIRC (but does have some might big hoops to jump through).

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jim249

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Reply with quote  #53 
If I buy a share of stock for $10.00 and sell it for $7.00, I now have a capital loss of $3.00. This can be used as a loss on taxes or to off set any gains on another investment. The $3.00 loss would come off of AGI, not on taxes owed.
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JG

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Reply with quote  #54 
Quote:
Originally Posted by jim249
If I buy a share of stock for $10.00 and sell it for $7.00, I now have a capital loss of $3.00. This can be used as a loss on taxes or to off set any gains on another investment. The $3.00 loss would come off of AGI, not on taxes owed.


Yes, but if you have $10 of metal at Bullion Direct, you haven't sold it for $7 yet (or $.70 or $.07). Until you you have disposed of the investment, or it is worthless, I do not believe you can take the loss (otherwise, the IRS could tax you on the $10 stock you bought that is now worth $20, even though you haven't sold it).

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jim249

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Reply with quote  #55 
I agree. Any one who tries to take a loss now is taking a big risk. You would have to convince the IRS that there was theft. If after the investigation is complete and the outcome is very different than what it appears now, you could wind up owing the extra refund you received plus any interest due. A big can of worms. In any case, it is best for all involved to consult with their tax adviser to figure out the best path to take for their own circumstances.
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