With all the debt discussions and economic uncertainty of recent, demand for precious metals has seen a major increase.  With any rise in demand there is often a similar rise in price further emphasized by the value of gold, which has risen to record levels on a global scale.  There are many reasons to hold and/or invest in gold including preserving one’s wealth, fighting against inflation, and maintaining a level of diversification just to name a few among the many other reasons to invest in this precious metal. 

You can, also, own gold in a variety of ways such as purchasing gold coins, bullion, jewelry, even through a futures market and exchange-traded funds (ETFs).  It is important to remember the IRS classifies gold as a capital asset and more specifically as a collectible.  A collectible is defined by the IRS, in regards to capital gains and losses, as art, rugs, antiques, metal, gems, stamps, and coins.  When sold, net collectible gains are subject to a HIGHER tax rate of 28%, if held for more than one year rather than the current long term capital gain tax rate of 15% for other capital assets.  

Just remember the IRS considers collectible gains (held for more than one year) to be subject to the 28% tax rate the next time you sell some of your valuables, artwork, and precious metals.

UPDATE: August 5, 2011:  Congress passed and the President has signed legislation that reinstates the taxes, retroactive to July 23, 2011.   Therefore, passengers who purchased tickets before July 23, 2011 and traveled between July 23, 2011 and August 5, 2011 are not entitled to a refund of the taxes.  The IRS plans to provide relief regarding taxes not otherwise paid or collected because of the lapse.

At midnight on July 22nd, 2011, the legislation mandating some of the taxes that passengers pay when purchasing an airline ticket expired.  Until Congress passes new legislation reauthorizing the taxes, airline tickets will not include these taxes.  The taxes include a 7.5 percent tax on the base ticket price, $3.70 per person per segment for domestic flights (higher for international flights), and a 6.25 percent tax on the amount paid for transporting property by air.

If you purchased an airline ticket prior to July 23rd, 2011, for travel after July 22nd, 2011, you are eligible for a refund of those taxes that you paid.  The taxes apply relative to the travel dates, not the ticket purchase dates.  The IRS suggests, in a posting on its website, that you first attempt to get the refund from the airline.  They have your travel dates and payment information and therefore can streamline the refund process.  If you are unable to get a refund through the airline, the IRS will come out with guidance “at a later date” to allow taxpayers to claim a refund through the IRS.

It is unclear at this point what will happen to passengers who purchase their tickets after July 22nd, 2011 and pay no tax, yet travel after the tax is reinstated.  Congress will have to address that scenario when they reauthorize the taxes.

In the meantime, check any tickets that you have purchased and request a refund from your airline.  Good luck!

As sure as the sun will rise in the morning, a phishing scam alleging to be from the IRS will appear in your e-mail box. Since most everyone has some dealing with the IRS and filing taxes, You are a popular target for scammers who count on people to take the bait and click on the links.  Fear of the IRS or an audit can make normally cautious people panic and click through the emails without fully considering the ramifications.

The IRS issues repeated warnings about these emails.

Due to increases in the price of fuel, the IRS announced today an increase in the optional standard mileage rates effective July 1,2011.  The new standard mileage rates are 55.5 cents per mile for business use of an automobile and 23.5 cents per mile for medical or moving.  The mileage rate for charitable miles is fixed by law and remains at 14 cents.