Tax Question

[LaSainte]

Ok, I know all about “render into Ceasar”, but I have a question. Let’s say that someone was gifted some gold coins by their father. Now, the law says that if one were to sell these coins, they would be obligated to pay a certain amount of capital gains tax (15% or so) based upon the amount the gold appreciated over the years since the giver purchased it.

Here’s the dilemma: One could very easily sell these coins off in small amounts for cash and the government would never even know they existed. It’s really based on the honor system. Now , given the new healthcare mandate in the U.S. and the fact that taxpayers are being forced to pay for abortions and contraception among other things, would it be a sin for that person to simply neglect to inform the government of this money and take the amount they WOULD have given Uncle Sam and give it to the Church or a Pro-life organization in protest?

 

[1ke]

Ok, I know all about “render into Ceasar”, but I have a question. Let’s say that someone was gifted some gold coins by their father. Now, the law says that if one were to sell these coins, they would be obligated to pay a certain amount of capital gains tax (15% or so) based upon the amount the gold appreciated over the years since the giver purchased it.

This isn’t accurate (assuming you are in the US). Your capital gains tax, if any, is a function of the adjusted basis of the coins at the time of the gift (which your father should have reported on his taxes, and could give tax free at certain levels each year), the Fair Market Value of the coins at the time you received them, and any tax paid by your father on the gift all in relation to what you sell them for.

Here’s the dilemma: One could very easily sell these coins off in small amounts for cash and the government would never even know they existed. It’s really based on the honor system.

Then be honorable.

I suggest consulting a tax advisor before selling the coins to minimize your tax liability. Nothing wrong with legitmately minimizing your taxes based upon the IRS’s own rules.

 

[LaSainte]

Hmmm…I had read that the cost basis of the giver transferred to the recipient, except of course in case of death (after the maximum allowable yearly gift has been taken into account).

Not trying to get out of paying one’s fair share, just wondering if a person could conscientiously object by giving the money to a cause that wasn’t morally objectionable.

 

[sw85]

Ok, I know all about “render into Ceasar”, but I have a question. Let’s say that someone was gifted some gold coins by their father. Now, the law says that if one were to sell these coins, they would be obligated to pay a certain amount of capital gains tax (15% or so) based upon the amount the gold appreciated over the years since the giver purchased it.

Here’s the dilemma: One could very easily sell these coins off in small amounts for cash and the government would never even know they existed. It’s really based on the honor system. Now , given the new healthcare mandate in the U.S. and the fact that taxpayers are being forced to pay for abortions and contraception among other things, would it be a sin for that person to simply neglect to inform the government of this money and take the amount they WOULD have given Uncle Sam and give it to the Church or a Pro-life organization in protest?

I don’t see how it would be a sin. If the law doesn’t require you to pay tax on sales under X amount, and you sell under X amount, then you’re not obligated to pay tax, so you’re not cheating. We’re obligated to pay taxes, but it doesn’t follow we must pay the most tax possible, i.e., by foregoing every tax break that would be available to us.

That said, it’s possible you’re misreading the law. There’s one that says that a company need not report your tax information to the IRS for consulting fees of less than $600 annually. That doesn’t mean I don’t have to pay taxes on that money. It just means I have to do the reporting, or else, yes, I am cheating on my taxes.

 

[LaSainte]

Well, I definitely think that some taxes will be involved should this person choose to sell all the coins at once and report that gain as income.

The question really is about at what point is a law unjust and at what point can we conscientiously object to it by giving the money to a worthier cause?

If the government I’d forcing someone to pay capital gains on money they already have in their possession, money that they ALREADY paid taxes on, that is unjust enough. I mean, if I keep a gold coin in my pocket for a year and it suddenly goes up in value because the government is intentionally printing worthless paper money, driving up the price of gold so that the people who want to convert it into cash are forced to pay them for it, isn’t this currency manipulation for profit?

On top of that, the current government would be using portions of said money to pay for abortions, contraception, executions, etc.

At what point are permitted to stand up and say “No, we will not give you this money that you have essentially made it legal to STEAL from us so that you can use it to destroy the moral fabric of my country!” At what point are we permitted to take that same amount and give it to a Catholic charity to make the world a better place?

The temple tax, although unjust to a degree, was actually permitting the Jews to worship and fulfill their obligations to God. The Romans got money out of it, so they permitted the Jews to worship. By continuing to pay this tax, they were ensuring the continuation of this right. Jesus knew that. They were choosing their battles, so to speak. When a government is ACTIVELY SUPRESSING the right of Catholics everywhere to practice their religion, then I don’t see how “render unto Ceasar” applies any longer.

 

[iloveangels]

…Now , given the new healthcare mandate in the U.S. and the fact that taxpayers are being forced to pay for abortions and contraception among other things, would it be a sin for that person to simply neglect to inform the government of this money and take the amount they WOULD have given Uncle Sam and give it to the Church or a Pro-life organization in protest?

Not possible. The IRS is in charge of this. If you don’t have the insurance they want you to have, you will pay the fine when you settle up your income taxes.

The fine is independent of whether you have made money in some way other than your regular job. The two things aren’t related.