Storing Precious Metals in Delaware Has State Tax Advantages, Says Diamond State Depository

View PDF | Print View
by: Diamond State Depository
Total views: 33
Word Count: 451
Date: Thu, 7 Apr 2011 Time: 4:46 AM
0 comments

Delaware In the nearly 80 years since the U.S. passed the Gold Reserve Act of 1934, gold bullion has been considered taxable property, rather than a tax-free currency. Tax treatment of precious-metals bullion and coins varies considerably by state, so when it comes to storage it pays to shop around for a facility with the most advantages, suggests Diamond State Depository, LLC.

The state with the best tax treatment for metals held in a depository is Delaware, says Mike Clark, President and General Manager at Diamond State Depository in New Castle, Delaware. "Since Delaware has no sales or use tax, customers buying precious metals anywhere in the U.S. can take delivery in a depository account here, and they won't pay sales and use taxes," he says.

What's more, Delaware charges no personal property, inventory or commercial net-worth taxes, Clark notes. And Delaware levies no tax on the payment of depository storage fees, as New York and several other states do.

Sales of precious metals bullion are taxable in the District of Columbia, North Carolina, Tennessee, West Virginia and many other states. Meanwhile, New York, Maryland, Louisiana and Texas exempt bullion from sales taxes if a transaction is greater than $1,000. In New York, bullion must be purchased for investment purposes to qualify for that exemption, however. Florida exempts sales of gold, silver and platinum bullion if a single transaction exceeds $500.

At least 15 states exempt gold, silver and platinum bullion from sales taxes, with no restrictions on transaction size, and they include Alaska, Arizona, Colorado, Georgia, Idaho, Illinois, Iowa, Michigan, Missouri, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota and Washington.

But again, Delaware has the greatest array of state tax advantages, allowing investors to save hundreds and sometimes thousands of dollars on storage a year, Clark says. Meanwhile, gold has doubled in price in the last five years, attracting a throng of first-time investors, he notes. "As interest in ownership of gold and other precious metals grows, new investors need to consider tax treatment when choosing a depository," he states.

Diamond State holds and insures metals and products in segregated accounts for individual customers in a high-security facility. Customers receive detailed confirmations and periodic account statements, and if they decide to sell a portion of their holdings, transactions can be made quickly over the telephone.

Diamond State Depository is in the center of the U.S. East Coast business corridor. Located on the outskirts of Wilmington, Delaware, Diamond State is the world's newest, most modern precious metals and certified coin depository, with insurance, security, systems and staff to meet the needs of individual and institutional investors.

For more information on Diamond State Depository, call 888-322-6150 or visit http://www.diamondstatedepository.com/.

About the Author

Diamond State holds and insures metals and products in segregated accounts for individual customers in a high-security facility. Customers receive detailed confirmations and periodic account statements, and if they decide to sell a portion of their holdings, transactions can be made quickly over the telephone.

Diamond State Depository is in the center of the U.S. East Coast business corridor. Located on the outskirts of Wilmington, Delaware, Diamond State is the world's newest, most modern precious metals and certified coin depository, with insurance, security, systems and staff to meet the needs of individual and institutional investors.

For more information on Diamond State Depository, call 888-322-6150 or visit http://www.diamondstatedepository.com/.