If I buy silver bar, is it tax deferred?
November 22, 2010 by
Filed under Silver Investment FAQ
I know if you buy over a $1000 worth you are not charged sales tax (it’s considered an investment) but what about Federal tax, is it deferred until you sell?
there is no federal tax when you make an investment. there is federal income tax on dividends. if you are buying actual silver (not a silver mining company) then there will be no dividends. if you sell the silver later, at a price higher than you paid for it, then you have a taxable profit. So, yes the tax is “deferred” since there isn’t any until you sell.