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Read the Monday Afternoon Wrap-Up for 9/24/2012 and the Tuesday Morning Commentary for 9/21/2012

I was set to write an entirely different RANT topic; but just before I started, I was sent an extremely exciting email from Miles Franklin’s tax attornies.  In it, I learned the costs of holding metal in our Canadian storage facility are TAX DEDUCTIBLE – per the language below:
§263A requires certain costs to be capitalized.  §263A (b)(2) and §1221 (a)(1) define that holding precious metal for resale meets the definition of expenses that should be capitalized and added to the basis of the underlying asset.
In addition to §263A, §266 allows a taxpayer to elect to capitalize §212 expenses.  §1.212-1 would include storage costs.
To capitalize under §266, the taxpayer must file an annual election with their tax return.  §263A is the method of account the taxpayer can use to capitalize storage costs without filing an annual election.
Whether you choose to declare such assets is up to you; per personal interpretation of vague FBAR and FATCA accounting rules.  However, we at Miles Franklin are doing everything we can to make the decision easier.

Aside from publishing RANTS like “CANADIAN BULLION STORAGE – THE SOUND OF SMART”, “CANADIAN STORAGE UPDATE,” and “FATCA – ANOTHER REASON TO OWN REAL MONEY,” we spend significant capital pursuing the most up-to-date legal and tax accounting counsel available.

We believe strongly in the ability of our Canadian offshore storage program to PROTECT assets in the coming years; and thus, seek to make it the safest and most cost effective in the industry, via…

  • FIXED RATE pricing – per ounce stored, NOT bullion value
  • PERSONAL audits of the vault each quarter by Miles Franklin officers

Moreover, as long as you send at least .999 fine silver and/or 24 karat gold – such as U.S. Buffaloes and Canadian Maple Leafs – there are no duties or taxes incurred shipping metals to Canada.  Metals for storage in Montreal can be purchased from Miles Franklin directly, or sent in-kind from your home or other institutions; and we can help you swap non-24 karat coins – such as U.S. Gold Eagles – into 24 karat coins, to enable tax optimization per the aforementioned Canadian tax laws.

If you have any questions, please call or email Miles Franklin’s brokers – who average 18 years of PM sales experience – at any time!


Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.