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Deduction of shipping costs in gold and silver buys?

September 22, 2010 by  
Filed under Silver Investment FAQ

Can I deduct the cost of shipping and insurance on the purchase of bullion?
I’m a small buyer of gold and silver bullion and coins. Of course the trick is to purchase at or below market spot (no interest in the numismatic value) however by the time shipping and insurance are added to the bullion it is sometimes well above spot. Can this be deducted as an “investment” expense?


2 Responses to “Deduction of shipping costs in gold and silver buys?”
  1. my_aching_spleen says:

    I believe only at time of sale.Since you would not be taxed on the purchase,you will be on any gain you have when you sell,and if you lost money you would show it as a loss.Hang on to those receipts.I am a tax preparer and I want to be a little more clear,so I will try to give you a more definitive answer after doing some research to be certain.Typically you can deduct it as an expense.

  2. SG says:

    No, it is not an investment expense. It is part of your basis when you sell it.

    Even if you could use it as an investment expense, it may not give you any benefit. Investment expenses are “miscellaneous deductions,” and are reduced by 2% of your AGI. IOW, you don’t get any benefit from miscl. deductions unless you itemize your deductions, and only if those deductions exceed 2% of your adjusted gross income.

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