Fair Treatment for Precious Metals Investors Act

Fair Treatment for Precious Metals Investors Act - Amends the Internal Revenue Code to treat bullion (e.g., gold, silver, platinum, and palladium) as a long-term capital asset (currently, treated as a collectible), eligible for preferential capital gains tax rates.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1157 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                S. 1157

   To amend the Internal Revenue Code of 1986 to treat gold, silver, 
platinum, and palladium, in either coin or bar form, in the same manner 
as equities and mutual funds for purposes of the maximum capital gains 
                         rate for individuals.


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                   IN THE SENATE OF THE UNITED STATES

                              May 26, 2005

 Mr. Crapo (for himself, Mr. Reid, Mr. Allard, Mr. Baucus, Mr. Craig, 
and Mr. Ensign) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

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                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to treat gold, silver, 
platinum, and palladium, in either coin or bar form, in the same manner 
as equities and mutual funds for purposes of the maximum capital gains 
                         rate for individuals.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Treatment for Precious Metals 
Investors Act''.

SEC. 2. GOLD, SILVER, PLATINUM, AND PALLADIUM TREATED IN THE SAME 
              MANNER AS STOCKS AND BONDS FOR MAXIMUM CAPITAL GAINS RATE 
              FOR INDIVIDUALS.

    (a) In General.--Section 1(h)(5) of the Internal Revenue Code of 
1986 (relating to definition of collectibles gain and loss) is 
amended--
            (1) by striking ``(as defined in section 408(m) without 
        regard to paragraph (3) thereof)'' in subparagraph (A), and
            (2) by adding at the end the following new subparagraph:
                    ``(C) Collectible.--For purposes of this paragraph, 
                the term `collectible' has the meaning given such term 
                by section 408(m), except that in applying paragraph 
                (3)(B) thereof the determination of whether any bullion 
                is excluded from treatment as a collectible shall be 
                made without regard to the person who is in physical 
                possession of the bullion.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to taxable years beginning after December 31, 2004.
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