Can storage fees for a metals account be capitalized? Or must it be a misc 2% itemized deduction?
Separately, is gains on "junk silver" subject to max 15% tax or 28% tax? [Just in case -- junk silver refers to pre-1965 circulated coins that is 90% silver; and they are bought/sold primarily for its silver value.)
TIA
If personal use this is a safe deposit box fee and is a misc deduction subject to (2% and AMT). If you were holding metals for your business that sells these metals, then it is a business expense. If you were holding metals for your business that makes things out of these metals then I think you must capitalize.
28%.
If you buy metals and make stuff out of them and sell that stuff, the metals would be inventory, and I don't know how to capitalize inventory.
Agree.
True. I was saying that the storage fees (probably like a safe deposit box) would have to be capitalized in this case, as it looks to me to be an indirect cost under IRC 263A.
I thought I posted this yesterday; but I don't see it here.
The metals is being held in a brokerage account and the brokerage firm charges the storage fee. But I assume the storage fee is still a misc deduction subject to 2% & AMT?
Is it personal or business?
,
I thought I posted this yesterday; but I don't see it here.
The metals is being held in a brokerage account; and the storage fee is charged by the brokerage firm. I assume the storage fee in this case is still a misc deduction subject to 2% & AMT?
Personal.
Then misc 2% deduction.
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