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I was set
to write an entirely different RANT topic; but just before I started, I was
sent an extremely exciting email from Miles Franklin’s tax attornies. In it, I learned the costs of holding metal in
our Canadian storage facility are TAX DEDUCTIBLE – per the language
below:
§263A
requires certain costs to be capitalized. §263A (b)(2) and §1221
(a)(1) define that holding precious metal for resale meets the definition of
expenses that should be capitalized and added to the basis of the underlying
asset.
In
addition to §263A, §266 allows a taxpayer to elect to capitalize
§212 expenses. §1.212-1 would include storage costs.
To
capitalize under §266, the taxpayer must file an annual election with
their tax return. §263A is the method of account the taxpayer can use to
capitalize storage costs without filing an annual election.
Whether
you choose to declare such assets is up to you; per personal interpretation
of vague FBAR and FATCA accounting rules. However, we at Miles Franklin are
doing everything we can to make the decision easier.
Aside from
publishing RANTS like “CANADIAN
BULLION STORAGE – THE SOUND OF SMART”, “CANADIAN
STORAGE UPDATE,” and “FATCA
– ANOTHER REASON TO OWN REAL MONEY,” we spend significant
capital pursuing the most up-to-date legal and tax accounting counsel available.
We believe
strongly in the ability of our Canadian offshore storage program to PROTECT
assets in the coming years; and thus, seek to make it the safest and most
cost effective in the industry, via…
- FIXED RATE pricing –
per ounce stored, NOT bullion value
- SEGREGATED, ALLOCATED storage
OUTSIDE THE BANKING SYSTEM, and
- PERSONAL audits of the vault each
quarter by Miles Franklin officers
Moreover,
as long as you send at least .999 fine silver and/or
24 karat gold – such as U.S. Buffaloes and Canadian Maple Leafs –
there are no duties or taxes incurred shipping metals to Canada. Metals for
storage in Montreal can be purchased from Miles Franklin directly, or sent
in-kind from your home or other institutions; and we can help you swap non-24
karat coins – such as U.S. Gold Eagles – into 24 karat coins, to
enable tax optimization per the aforementioned Canadian tax laws.
If you
have any questions, please call or email Miles Franklin’s brokers
– who average 18 years of PM sales experience – at any time!
PROTECT
YOURSELF, and do it NOW!
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