For
the sale of gold bars and gold coins to be considered reportable, each individual piece of gold bar must have a fineness of at least. When a gold purchase must be reported, the trader is the one to report it. Form 8300 requires information about the gold buyer, including name, social security number, address, and license number. If any part of the form is left blank, the merchant must still mail the form to the IRS.
Unscrupulous traders know this and use it to prevent clear thinking; they use the threat of “reporting” to scare investors. This law was repealed in 1974 and is only relevant today with regard to certain cases of buying gold. The following is a description of how these investments are taxed, as well as their tax reporting requirements, the calculation of the cost base, and ways to offset any tax liabilities arising from the sale of physical gold or silver. Physical stocks of precious metals such as gold, silver, platinum, palladium, and titanium are considered fixed assets by the Internal Revenue Service (IRS), which are specifically classified as collectibles.
If a consumer sells a reportable quantity of certain gold bars or coins, precious metal dealers must file Form 1099-B with the IRS. For more information on reporting requirements or other aspects of buying or selling precious metals, contact the experts at First National Bullion and Coin. Under certain circumstances, a trader must file a Form 1099-B with the IRS to report income paid to a non-corporate seller of precious metals. Each piece of silver must also have a fineness of at least so that the sale of silver bars and silver coins is reportable.
There is a lot of contradictory and inaccurate tax information on the Internet about taxes on gold and silver. Physical holdings of gold or silver are subject to a capital gains tax equal to your marginal tax rate, up to a maximum of 28%. Gold and silver bars can attract unwanted attention or require special declarations for currency instruments, but a gold chain is, well, just another gold chain. So if you sell your investment jewelry for a profit, the same maximum capital gains rate of 28% applies to precious metals and must be shown in your income tax return.
To prevent the government from finding out about their precious metal investments, many investors are happy to learn that their purchases go unreported and end up buying overpriced coins. Under current law, retailers are not required to report jewelry sales, even if they involve 22,000 or 24,000 pieces of gold or quantities that exceed the 25-ounce limits for bars and many coins.
