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Aussie Gold Hunters: New Episodes On In United States?


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I've always wanted to see NZ, so if the deal comes off I might pay you a visit Simon.

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After watching this show I was reminded of why I gave up mining claims and leases.

These people are actually buying their gold. What I mean by this is that they are hoping that the yield will exceed the expenditure, and at the end of the exercise they are lucky enough to do better than break even. Even for a low budget operation there are so many possible setbacks. Breakdowns, weather, and government red tape being but a few of the frustrations that one must bear when tangled up in a mining operation.

Even prospecting with a detector is a form of buying gold, but it is definitely the cheapest option, especially if you are fortunate enough to live near where you prospect. A fancy four wheel drive, big caravan, lots of fuel on a trip across the country naturally increases the amount of gold you need to find in order to make a profit. Let's face it, most  detector operators as purely hobbyists never make a profit, but are happy with that situation and satisfied with the thrill of the odd bit of gold here and there.  Those that are pretty good at this game and have some success are still usually working for peanuts when you consider the hours spent in the pursuit of color.

The bigger the mining operation the bigger the risk, and any 'down time' is money lost. One thing that many fail to take into consideration is the task and cost of rehabilitation once the gold reserve has been exhausted. The gold fields are littered with the mess left where companies have gone broke and their forfeited bond has not been sufficient to cover the rehabilitation expenditure.

A good detector waved over the right area by someone who has an idea of what they are doing is still the cheapest way of 'buying' your gold.

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Back in the days when Bob Hawke was our Australian Prime Minister gold was tax free, but a rumor circulated that the government was planning to bring in a gold tax. From memory it was about 1990, and to placate the miners Mr Hawke stood before a large gathering in the famous gold mining town of Kalgoorlie and told the miners that there would be no gold tax. "Well that's it", I said to the guy that I was working gold with at the time. "I'm going to sell every ounce I've got". "Why would you do that"? my partner asked. "Because if a politician says one thing he really means the opposite" I replied. Sure enough, just under twelve months later they introduced a gold tax.

This tax was an income tax, the same as any other. If your primary source of income was from gold, then you were liable to pay tax provided that income was above the taxable figure, and tax became an obligation upon the sale of said gold. Equipment and other legitimate expenses were of course deductible. The hobbyist did not need to pay tax, even if they found a large nugget. This was classed as a 'windfall', the same as winning a lottery. It was advisable and perfectly legal to spread the sale of gold where possible, rather than sell a large parcel at a time.

I paid tax until I reached a stage where my income fell below the taxable amount, and or I was of a legal retirement age. Should I be lucky enough to hit a good patch or large lump now it will fall into the 'windfall' category when it is sold.

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I think our laws are similar if you have to 'show' any gold income.  It is possible to sell (cash sale) without a trail but that likely is not to a refinery.  They would be required to report the cash they pay you in the form of a 1099 which is the same as if you were to get a large casino winning.  Gamblers always have a way of showing losses to exceed winnings unless it would be a big tournament.

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Hey Reg

 

you may know, what is the limit of gold you can sell in a financial year as a hobbyist  
(Here in Australia )from memory,it was 80grand Is that right, before the tax man wants to know anything

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