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Gold Coins sold by US Mint

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Cluesaw posted on Tue, Feb 1 2011 8:48 AM
    According to the IRS, using gold coins is considered bartering and both sides of the trade must report the Fair Market Value of what was received.    Are gold coins sold by the US mint excempted from this rule?
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No but since when do little things like freedom and the Constitution stop Washington.  There was a case where some clever dude in Arizona I think, was paying his folks in gold and silver dollar denominated coins so 1 silver dollar with 1 ounce of silver worth $20 at the time he would declare $1.  Of course that is the amount on the coin itself.  The various Federal Agencies have arrested him and I do not know what the status of his case is at this time.

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Yeah I'm not sure if the American Gold and Silver Eagles are actually legal tender, or just bullion?  If they are legal tender with a declared value, how can they prosecute that?  If not, then what's the point of stamping them with a nominal dollar value.

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Bogart replied on Tue, Feb 1 2011 12:01 PM

You are assuming that the government really does obey its laws and regulations that the rest of us have to obey.

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Well, yes but they still have to charge him with something and convict the guy in a jury trial. 

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Gold coins and silver coins are legal tender. One ounce of gold Eagle is $50. One ounce of silver Eagle is $1.

You can legally take them to a store, a bank, whereever - and spend them for those amounts.

 

As far as the guy in question under arrest, I imagine he was valuing the coins at more than face value - is why he is being prosecuted. Either on tax forms. Or either if he valued them at face value - the gov't might be claiming he was paying less than minimum wage.

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