U.S. Goldmoney Holdings Reportable: Here's the Proof

We now have definitive proof that Goldmoney Holdings belonging to U.S. Taxpayers and exceeding the defined thresholds must be reported on the FBAR and Form 8938:

US investors should be aware that precious metals are reportable under these IRS and FinCEN foreign asset/account obligations:
  • Form 8938, Statement of Specified Foreign Financial Assets
  • FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)
if the vault operator has unrestricted access to the metal. Only if the precious metal is under the exclusive control of the investor (for example, a safety deposit box for which only the investor holds the key) would the holdings avoid reporting (emphasis added).
This quote is from the second half of an article by Bron Suchecki, formerly of the Perth Mint in Australia and now with Monetary Metals (another great company in the precious metals space by the way).

Suchecki links to an article by Michael DeBlis, III entitled What You Need To Know About Storing Gold And Cash Notes In An Offshore Vault. "Michael’s unique background in tax law puts him into an elite category of criminal defense attorneys who specialize in criminal tax defense." This is a very technical article, but definitely worth reading if you need more convincing that you absolutely cannot afford to avoid filing these forms.

I'm working on detailed instructions explaining how to determine if your Holding is above the reporting thresholds, and if so how to file the forms. I hope to finish and post this weekend.


  • GoldNRollGoldNRoll Posts: 211 Bronze ✭✭✭
    @SpontaneousOrder I'm not an US resident so I'm not directly concerned but I do want to understand:
    If an US resident buys and sells gold frequently so that the Goldmoney holding varies largely from one month to another (moreover, varying above and below the said threshold), what amount has to be reported?
  • Lone_StarrLone_Starr Posts: 104 Bronze ✭✭✭
    When in doubt, report it. It's not that big of a deal.

    @goldnroll - I believe its based off the highest amount. The goldmoney holding has a report that you can run that tells you the highest amount you had all year and what month it was in.

    So if my balance fluctuates between 2K and 4k you run off the higher number (4K) but both those amounts are too low for reporting to care about. I believe FBAR is 5K and the other is ten's of thousands.

    If you have a goldmoney holding but store your gold in New York. Is it really a foreign holding?
  • SpontaneousOrderSpontaneousOrder Posts: 302 Bronze ✭✭✭
    @GoldNRoll, here's a document with a detailed explanation of the reporting thresholds and filing instructions: Goldmoney Holding, FBAR, and Form 8938. Some reviewers / proof-readers would be great, especially from someone with more tax expertise than I.

    @Lone_Starr, I believe Holdings are report-able even if you use exclusively the New York vault. It's still Goldmoney, headquartered in Canada with Holdings managed out of the British Channel Islands office. Definitely a foreign account.
  • GoldNRollGoldNRoll Posts: 211 Bronze ✭✭✭
  • Lone_StarrLone_Starr Posts: 104 Bronze ✭✭✭
    @SpontaneousOrder "I believe Holdings are report-able even if you use exclusively the New York vault. It's still Goldmoney, headquartered in Canada with Holdings managed out of the British Channel Islands office. Definitely a foreign account."

    Probably true. I'm sure lawyers could argue either way. It's just an interesting observation.
  • veraxverax Posts: 9 Tin ✭
    If I were a US person I would simply move my holdings to the NY vault.
  • RocketDogRocketDog Posts: 765 Silver ✭✭✭✭
    I thought reporting one's income to the IRS was voluntary. (ROFL) Isn't it funny how the tyranny of the IRS has people volunteering to do loads of paperwork for them to avoid their evil wrath. Think about it. You would think a government entity such as that, would have to publish very clear instructions. And they would then have the burden of proof to convince a court that you did not comply, before taking your assets and ruining your life. But, no, all these people wondering how to tell them enough to be left alone. Volunteering to do reams of paperwork and record-keeping, change their investment practices, reveal whatever the Feds want to see, and even suggestions of keeping all your gold in the USA to avoid difficult reporting (oh ya, where it could then be conveniently scooped up by those same Feds). I wonder if that isn't one of the goals of all these complicated laws?
    Where's the freedom here?
    If they are NOT just trying to be tyrannical A-holes they would simplify the tax code, give us forms that could be filled out without attorneys, and they would have no right to seizure of property without due process of law in local courts.
    I am not reporting to them about gold, which is physical property, that I hold to store value -- the value that I already earned and paid income tax on once before. I am not "making money" or "earning income" just because the value of the dollar falls against the value of my gold.
    Anything that I do in a foreign country is no business of USA unless I am nothing but chattel of my country (well, duh!). Still, I don't have to make it that easy for them.
  • SpontaneousOrderSpontaneousOrder Posts: 302 Bronze ✭✭✭
    I really love filling out IRS forms - FBAR, f8938, f8949 - oh yeah! I also love root canals and prostate exams.
  • RocketDogRocketDog Posts: 765 Silver ✭✭✭✭
    edited February 2018
    @SpontaneousOrder -- at least you have your priorities straight!! Don't forget colonoscopies!
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