Strategic Resources, LTD.(fka SGCR)

[Hilander]

Ad1, It's IRS Time Again: OK, Now What? What are we going to do with these SGCR profits?

These notes are from my Journal from last year. It's always a good idea to review once a year to see if there's any changes to the IRS Code. Are there any for 2006?

I use these as my guideline and they change from year to year. I suggest you make your own.



PAYING IRS TAXES:

ETF’s - Don’t buy unless you plan on keeping more than one year.
Short Term Capital Gains Tax (less than a year) Now=35% Later=23%
Long Term Capital Gains Tax (over a year) Now=28% Later=23%
As noted, the difference in taxation between these two investment vehicles is rather large, especially in all transactions under a year in duration.

REMEMBER, by holding my core positions I put myself in a position to minimize my taxes and pay long-term capital gains when I do decide to take profits down the road.

5-15-06
AT TAX SEASON VERIFY TAX RATES!!!
Silver Institute
[phone]
Congress and Senate are scheduled to vote on lowering gold & silver tax rates. Plan to change from being a collectable to a precious metals stock. Bill #HR-574 S-611. Should be a new tax rate for 2006?

Reminder Note: Determine what the new precious metal stock tax rate will be for 2006. Sounds like there's a change coming. “For those of you concerned that the unequal tax treatment of your gold holdings, and judging by my email there are a lot of you, J. Kent Willis has reported that "Joint legislation from Nevada Senators Reid and Ensign aka 'Fair Treatment for Precious Metals Act' passed the US Senate in 2004 with a vote of 92-5. The House has not approved it yet, but will soon." The bill will treat gold bullion investments as it does other equities, with short and long term tax rates of 20% and15%, instead of continuing to treat gold as a collectible, and thus taxable at the 28% rate”.

ADDITIONAL READING:
Tax Traps Can Snare Your Capital Gains
By: Leonard Wiener
Posted Sunday, July 16, 2006 in US News.com
http://www.usnews.com/usnews/biztech/articles/060716/24checklist.htm