Useful advice to manage possible capital gains
Welcome to Goldfixing’s guide on gold disinvestment. In this document, we are going to examine all the steps to successfully manage possible capital gains coming from the sale of gold. Following these steps will help you to maximize your gains and comply with current fiscal laws.
- Assessment of Capital Gain
Before proceeding with the sale, it is fundamental to accurately determine the capital gain. Let’s make an example to explain this concept:
Let’s assume that we have purchased 7 gold bars of 100 grams and 6 gold bars of 50 grams in 2019, when the gold price was 36 euros/gram. The total amount of the investment will be 36.000 euros (25.200 (gold bars of 700 grams) + 10.800 (gold bars of 50 grams)).
Let’s assume that in 2024 we decide to sell part of our investment, for example 7 gold bars of 100 grams when the gold price has reached 73 euros/gram.
The total gain amount will be equal to 51.000 euros (sell price of 7 gold bars of 100 grams for 73 euros) minus 25.200 euros (capital invested in 2019) for a total amount of 25.900 euros.
This example shows how it is possible to have a series of significant advantages after assessing the capital gain:
- Immediate liquidity
This can be extremely beneficial in different situations, for example when it comes to face unexpected expenses, invest on other opportunities or simply improve financial liquidity of the portfolio. Access to immediate liquidity enables investors to promptly face financial needs without selling the whole investment portfolio. - Recovery of the initial capital
It is particularly significant because it enables them to make real profits without compromising the integrity of the investment portfolio. Recovery of the initial capital gain represents a solid base for future investment decisions and offers a higher financial flexibility. - Residual of stored gold bars for a possible future disinvestment
These gold bars represent an opportunity for future disinvestments and enable the investors to take advantage of the opportunities of the gold market in a later time. Keeping part of the gold investment enables to diversify the portfolio and mitigate the risks of specific sectors or financial assets.
- Taxation of capital gain
With the entry into force of the new budget law 1/2024, investing in gold has become an activity which is even more regulated. Today the law requires the maximum tax transparency and a full documentation regarding the purchase of precious metals.
In the past, taxation was more favorable in case of lack of documentation. Yet, the new law requires that if there is no such documentation, taxation of the capital gain will be applied on the entire amount obtained from the sale, rather than on the previous 25%.
Like all financial investments, Italian law stipulates a tax of 26% on the capital gain, but, with the new budget law 1/2024, if the purchase sheet is not present, the taxation of 26% will be calculated on the entire sale.
- Declaration of capital gain on the income
Taxable capital gain, as a result of the difference between the agreed consideration for the sale and the purchasing value of the metal, must be specified yearly in the RT frameworksection II “Financial capital gain” in the tax form for Individuals.
The section II must thus be completed:
- Line RT21- total consideration resulting from disposal of unqualified holdings, disposal of reimbursement of financial
- Line RT22, column 3- the total financially recognized cost of securities, currencies, precious metals or reports, namely the restated cost;
- Line RT23, column 2-the difference between the amount indicated in line RT21 and the amount indicated in line RT22 column 3, if positive.
The resulting tax base will be subject to a substitute tax of 26%. The substitute tax must be paid by the taxpayer through a F24 form, by the deadline for payment of income tax. Today the deadline is 30th of June of the current year, with regard to the tax due in the previous year. The payment of this tax will be performed with reference to the balance of the previous year without making advance payments for the current tax year.
In case of capital loss (loss coming from the sale of gold at a lower price than the purchase price), it can be compensated with possible capital gains realized during the tax period, otherwise, after 4 years from the achievement of the capital loss to compensate, the residual will be lost.
Choose Goldfixing for a safe disinvestment that complies with the law
After carefully examining the main steps to successfully manage the possible capital gain coming from the purchase of gold, it is clear that, in this context, it is important to rely on professional operators to ensure a safe disinvestment compliant with the law.
Goldfixing, which is registered to Banca d’Italia as a Metal Bank with authorization number 5004866, represents the ideal partner since it stands out for its conformity to the law, the transparency of transactions and quality customer service. With more than 10 years experience, the expert team of Goldfixing is highly skilled and ready to help investors in every step of the investment process.
Goldfixing provides complete consulting regarding capital gain, taxation or tax return to grant the investors a sense of security. In a market where regulatory compliance is important, choosing Goldfixing as investment partner enables you to securely face the new challenges of the capital gain law.
Choose Goldfixing for a safe gold disinvestment and maximize your gains in compliance with current tax regulations.
