So, I advise you to be smart with gold and silver sales, as not reporting capital gains is as serious as not reporting your income tax properly. Why? Because it’s a very private and powerful form of money not easily tracked on a bank brokerage account, and not created (out of thin air?) by the Federal Reserve.ĭid you know that from 1933-1974 it wasn’t even legal for citizens to own gold without a special license? As they say, “with great power comes great responsibility!” Do Coin Dealers Report Gold / Silver Coin Sales?Īlthough most of the time coin dealers do not report gold / silver sales, you still want to do your homework before buying any specific investment so you aren’t surprised down the road. The subject of gold and silver has the potential to make uncle Sam a little nervous. Gold & Silver Coins & Bullion Make The IRS Nervous Regardless of the type of silver or gold coins, and whether rare numismatic coins or bullion coins, assume a 28% tax on capital gains when you sell them, as they are all classified as collectibles by the IRS unless advised otherwise by your accountant. Saint Gaudens Double Eagles, Liberty Gold Coins, Buffalo Gold Coins, American Eagle Gold Coins, Silver Eagle Gold Coins: Bullion and Rare Coin Sales & Taxes The sale of a few Krugerrands in a single tax year will not require the additional form. Remember, filing the 1099 only applies to larger sales (over 25 ounces) of these coins. You do not have to file a 1099 with any quantity of the following silver bullion coins:īecause these gold coins and silver coins require less paperwork, they are often more popular among people who buy large quantities of gold bullion coins. Gold coins that do not require the additional filing of a 1099 (you still have to pay capital gains on any profit after sale!) include: (.999 fine gold) or more than 1000 ounces of silver bullion bars or rounds. You’ll also have to file that same 1099 form if you sell more than 32.15 ounces of any size gold bullion bars.
Canadian Gold Maple Leaf Coins (1 ounce).You will have to file an additional form at tax time if you sell more than 25 ounces of the following gold coins: If you are thinking about what kind of gold coins to buy as an investment, note that not all gold coins are the same. You May Also Have to File a 1099 Form When You Sell 25+ Ounces of Gold Coins 28% capital gains tax on $1000 profit = $280 in taxes.Generally you will be taxed 28% on the profits made from the sale of your gold coins and gold bullion. (The idea is that when you buy a stock you are boosting the economy, so they tax you at a lower rate not so with collectibles)
Gold coins are considered by the IRS to be collectibles, which are taxed at a higher rate than say, selling a stock that you’ve held long term.