Diamond State Depository-New Castle, DE
With the bullion craze in full swing, depositories are a good option for the person who is stocking up on precious metals. The fun of having your own personal safe in your home, and stuffing in full of gold and silver, can get a little scary with today’s prices. I’ve seen a few different depositories in my travels, and always enjoy stopping by and seeing their facilities. I first came across Diamond State Depository in one of their ads in Coin World. Then I ran into them at the F.U.N. Show in Tampa. I fully understand the concept of security in a depository, but one of Diamond State’s advantages is that Delaware has an abundance of tax advantages. I urge anyone who has large amounts of bullion to educate themselves on this possible option for storage. The higher these precious metals rise, so does the interest of the people with bad intentions.
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In the nearly 80 years since the U.S. passed the Gold Reserve Act of 1934, gold bullion has been considered taxable property, rather than a tax-free currency. Tax treatment of precious-metals bullion and coins varies considerably by state, so when it comes to storage it pays to shop around for a facility with the most advantages, suggests Diamond State Depository, LLC.
The state with the best tax treatment for metals held in a depository is Delaware, says Mike Clark, President and General Manager at Diamond State Depository in New Castle, Delaware. “Since Delaware has no sales or use tax, customers buying precious metals anywhere in the U.S. can take delivery in a depository account here, and they won’t pay sales and use taxes,” he says.
What’s more, Delaware charges no personal property, inventory or commercial net-worth taxes, Clark notes. And Delaware levies no tax on the payment of depository storage fees, as New York and several other states do.
Sales of precious metals bullion are taxable in the District of Columbia, North Carolina, Tennessee, West Virginia and many other states. Meanwhile, New York, Maryland, Louisiana and Texas exempt bullion from sales taxes if a transaction is greater than $1,000. In New York, bullion must be purchased for investment purposes to qualify for that exemption, however. Florida exempts sales of gold, silver and platinum bullion if a single transaction exceeds $500.
At least 15 states exempt gold, silver and platinum bullion from sales taxes, with no restrictions on transaction size, and they include Alaska, Arizona, Colorado, Georgia, Idaho, Illinois, Iowa, Michigan, Missouri, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota and Washington.
But again, Delaware has the greatest array of state tax advantages, allowing investors to save hundreds and sometimes thousands of dollars on storage a year, Clark says. Meanwhile, gold has doubled in price in the last five years, attracting a throng of first-time investors, he notes. “As interest in ownership of gold and other precious metals grows, new investors need to consider tax treatment when choosing a depository,” he states.
Diamond State holds and insures metals and products in segregated accounts for individual customers in a high-security facility. Customers receive detailed confirmations and periodic account statements, and if they decide to sell a portion of their holdings, transactions can be made quickly over the telephone.
Diamond State Depository is in the center of the U.S. East Coast business corridor. Located on the outskirts of Wilmington, Delaware, Diamond State is the world’s newest, most modern precious metals and certified coin depository, with insurance, security, systems and staff to meet the needs of individual and institutional investors.
For more information on Diamond State Depository, call 888-322-6150 or visit http://www.diamondstatedepository.com/.
Media Relations Contact:
Jo Trizila
jo@TrizCom.com
O: 972-247-1369
C: 214-232-0078
Contact: Jo Trizila, jo@trizcom.com, 214-232-0078
JO Trizila
March 28, 2011 at 5:01 pm