[GNC] Income earned in gold

[Brad Morrison]

Hi Michael, Fred, & GnuCash users, 

This is an interesting topic! 

The points that Michael brings up about tax implications made me wonder
if your gold investment produces a 1099 and if so, what type of 1099 it
generates...? 

Which is another way of wondering if it is classified as interest income
(1099-INT - https://www.irs.gov/forms-pubs/about-form-1099-int), capital
gains income or dividend income (1099-DIV -
https://www.irs.gov/forms-pubs/about-form-1099-div) or mineral rights
(1099-MISC - https://www.irs.gov/forms-pubs/about-form-1099-misc)...? 

---
Thanks, 

Brad - https://www.facebook.com/brad.morrison.12327/ &
https://norcal.social/@BradMorrison 

On 2025-01-02 13:24, Michael or Penny Novack via gnucash-user wrote:

> On 1/2/2025 11:24 AM, Fred Tydeman wrote: 
> 
>> I have an investment in gold (so many ounces).
>> That investment earns "interest" payable in gold (not USD).
>> When I try to setup a new Income account,
>> the only Namespace offered is Currencies.
>> If I try to add a fake currency of Gold,
>> I do not get the Currencies Namespace.
>> 
>> I could guess at the price per ounce of gold at that payable date
>> and record the income as USD.
>> 
>> Any better suggestions?
> Consult tax professionals (and/or the IRS). As far as I can tell not YET a gnucash question and the same true for other commodities like Bitcoin. I would FIRST want to see a ruling about whether this IS income or only later (when sold) income/capital gain. The fact that "gold bugs" want gold treated as if it were currency doesn't make it so. Legally NOT currency in the US for just shy of 100 years.
> 
> NOTE:  Seeing it as income (even though a commodity) because you think a commodity not subject to increase is lack of imagination. Suppose your commodity were 100 cows? << couldn't they have calves? >>
> 
> Michael D Novack
> 
> PS: IF the IRS says is current income at the then valuation date think about a transaction where you BOUGHT that amount of gold, SOLD that amount of gold, received that amount as dollars. Do you have transactions (when taken together) that have debits and credits to your bank account that cancel each other
> 
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