Post by Logan on Feb 14, 2017 19:14:32 GMT -6
Arizona legislators desire tax carve out for all that glitters
Arguing that federal policies have made paper money “virtually worthless,” Arizona lawmakers are moving to allow residents to invest in gold coins and not have to pay state taxes on any profits they make when they sell them.
Legislation awaiting a final House vote would carve an exemption in existing laws that require people to report – and pay taxes – on capital gains. So, if you buy art, jewelry or an antique car for $10,000 and sell it for $12,000, you owe the state tax on that $2,000 profit.
But Rep. Mark Finchem, R-Oro Valley, argues that’s not true if you’re buying U.S. gold coins. He said it’s simply exchanging one form of U.S. currency for another.
“If you were to exchange four quarters for a dollar bill, that’s not a taxable event,” Finchem explained during House debate last week on his HB2014.
Read more: azcapitoltimes.com/news/2017/02/11/arizona-legislators-desire-tax-carve-out-for-all-that-glitters/
Arguing that federal policies have made paper money “virtually worthless,” Arizona lawmakers are moving to allow residents to invest in gold coins and not have to pay state taxes on any profits they make when they sell them.
Legislation awaiting a final House vote would carve an exemption in existing laws that require people to report – and pay taxes – on capital gains. So, if you buy art, jewelry or an antique car for $10,000 and sell it for $12,000, you owe the state tax on that $2,000 profit.
But Rep. Mark Finchem, R-Oro Valley, argues that’s not true if you’re buying U.S. gold coins. He said it’s simply exchanging one form of U.S. currency for another.
“If you were to exchange four quarters for a dollar bill, that’s not a taxable event,” Finchem explained during House debate last week on his HB2014.
Read more: azcapitoltimes.com/news/2017/02/11/arizona-legislators-desire-tax-carve-out-for-all-that-glitters/