Abstract

http://ssrn.com/abstract=1673405
 


 



Panning for Gold


Joel S. Newman


Wake Forest University - School of Law

September 7, 2010

Wake Forest Univ. Legal Studies Paper No. 1673405

Abstract:     
Most tourists who engage in gold panning find gold which is worth less than their price of admission to the gold mine. From a tax standpoint, they have nondeductible, personal losses. Those precious few who find gold which is worth more than their price of admission should not have taxable income unless or until they sell the gold to a third party. Due to the valuation and allocation difficulties inherent in measuring basis and amount realized, there should be no realization event when the gold is panned. Alternatively, the gold panning activity can be viewed as producing tax free, imputed income, at least until the later sale event.

Number of Pages in PDF File: 8

JEL Classification: Federal Taxation, Imputed Income, Gain or Loss, Recognition and Deductibility

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Date posted: September 8, 2010  

Suggested Citation

Newman, Joel S., Panning for Gold (September 7, 2010). Wake Forest Univ. Legal Studies Paper No. 1673405. Available at SSRN: http://ssrn.com/abstract=1673405 or http://dx.doi.org/10.2139/ssrn.1673405

Contact Information

Joel S. Newman (Contact Author)
Wake Forest University - School of Law ( email )
P.O. Box 7206
Winston-Salem, NC 27109
United States
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