taxes on gold sales

[Acala]

Suppose I decide to sell gold or silver bullion at the coin store. Are they going to report the sale to the IRS?

 

[ARealConservative]

Suppose I decide to sell gold or silver bullion at the coin store. Are they going to report the sale to the IRS?

Yes, but they won't ask you for any information to record that side of the transaction.

It is your responsibility to report your loss.........

 

[forsmant]

Why can't we charge taxes to the coin dealer as they do to us?

 

[ARealConservative]

Why can't we charge taxes to the coin dealer as they do to us?

my state has no taxes on coins.

 

[forsmant]

my state has no taxes on coins.

Well fancy you living in no tax state. What state?

 

[thuja]

who is charging taxes on these, and based on what? i did not pay any.

 

[Cleaner44]

If you are buying legal tender coins, junk silver, silver eagles, etc, there should not be any tax.

 

[forsmant]

Nebraska sales tax. The coins were numismatic.

 

[ARealConservative]

Well fancy you living in no tax state. What state?

I'm from Iowa which isn't a no tax state, they just don't tax coin sales.

Either does Illinois for that matter.


.....Or the internet......yet........

 

[forsmant]

Internet shipping is expensive though.

 

[ARealConservative]

Internet shipping is expensive though.

True, but in volume I can get better deals then at a coin shop at times.

 

[theseus51]

You can just use like craigslist or something, cash only sale.

 

[Corydoras]

Legally, you're supposed to report sales of gold as "collectibles" just like fine art, even if they're plain bullion and not numismatics! I believe that's 28%.

But surely nobody wants to sell at this time unless personal circumstances force it?

 

[Banana]

How likely is it that IRS will find out?

 

[Acala]

income tax

I am concerned with income tax on the capital gain, not sales tax. If I understand the law correctly, if I buy a gold coin at $800 an ounce and sell it at $1000 an ounce, I have $200 in capital gains income to report on my income tax. I would rather not do that so I want to sell my coins - at some hypothetical future date - without leaving a paper trail.

 

[Corydoras]

Just found this page:
http://taxes.about.com/od/capitalgains/a/CapitalGainsTax_4.htm

Apparently, the government penalizes people who hold bullion for less than a year by charging a much higher tax rate as a short-term capital gain.

 

[Zippyjuan]

What sort of markup are you finding on gold? That was one thing that has kept me from buying more. I did buy some gold back in the 1970's when it went crazy and I ended up paying about $750 an ounce which was not seen again until just recently. I thought markup was around 15%? That would mean it has to go up by 30% to break even- without including taxes. Is that what you have found? The dealer takes his markup on both the buying and selling end. I heard that numismatic coins and bullion can have different margins as far as dealer markup on the transaction. Just wondering if it is worth it again or not.

 

[adam1mc]

Suppose I decide to sell gold or silver bullion at the coin store. Are they going to report the sale to the IRS?

Just don't sell thousands or tens of thousands at a time. Spread out your sales between multiple shops and even possibly some on ebay.

 

[angelatc]

Well fancy you living in no tax state. What state?

I do not have any direct experience, but I believe that Illinois has no taxes on coins.

I know from loitering endlessly in the Ron Paul office that the gold dealers do not collect sales tax on sales.

Wow - 28% capital gains? That's steep! I wonder how they handle the cost basis of assets that have been passed down through an inheritance?

 

[Cleaner44]

Just found this page:
http://taxes.about.com/od/capitalgains/a/CapitalGainsTax_4.htm

Apparently, the government penalizes people who hold bullion for less than a year by charging a much higher tax rate as a short-term capital gain.

How can they tell if a coin I sell today is one that I bought last month or last year?