If you have an e-gold account do you have to pay taxes on that balance?

Question

Or do you only have to pay taxes on what you convert to cash? For example, say someone has $5,000 in their e-gold account and uses only $1,000 of it on a debit card. Do they pay taxes on the $5,000 or the $1,000?

Answer 1

You don't pay taxes on the amount of assets you have, whether it's e-gold or a regular savings account. You only pay taxes on income (including interest) and capital gains. So if your $5000 earns an extra $250 over the year because of the price of gold going up, you pay taxes only on the $250. And that's only if you sell all your e-gold shares during the year. If you only sell some of your shares, you only pay taxes on the increased value of those shares, not the ones you keep.

Likewise, if you sell some of your e-gold shares at a lower price than you bought them, you can count it as a capital loss which reduces your taxes. This only applies to the shares you sell at a loss, not the ones you keep.

Answer 2

No.