Gold Silver Bullion Tax IRS Reporting Rules

IRS Precious Metals Reporting Tax Rules USA

Please note the following information is for educational purposes only and should never be considered financial advice. Exclusion from reporting requirements do not exempt customers from capital gains taxes or other relevant taxes associated with the purchase or sale of physical precious metal bullion products. Consult a professional tax advisor for any tax advice you need.

Although US Congressional efforts are underway to potentially repeal capital gains taxes on Constitutional gold and silver monies (H.R. 6790), we want all bullion buyers and sellers to understand current buying privacy statutes, bullion dealer reporting thresholds when buying back from customers, and potential current capital tax gain / loss.

In the following content, we again cover IRS bullion reporting requirements when buying bullion in the USA.

We also discuss current IRS reporting requirements if selling bullion to US based precious metal dealers as well.

Finally we will end this post by discussing current general Gold Silver Tax ramifications for when you sell bullion at either a profit and or a loss. Of course, we are not tax professionals so be certain to consult one with your specific needs or questions.

Gold Reporting on large Cash & Cash Equivalent Payments

Gold Reporting to the IRS when buying bullion

For bullion buying and selling privacy statutes, there are certain IRS reporting requirement rules which bullion dealers in the USA must comply with. Reporting rules when buying bullion trace their roots to Anti-Money Laundering laws.

Here at SD Bullion, we have purposely set up our bullion payment policies so that the high 99% percentile of customer bullion purchases remain private, without additional paperwork or any IRS reporting required.

For bullion selling to dealers, some products sold in certain volumes are reported in high volumes, and this legal requirement traces its roots to 1980s CFTC rules regarding the futures contract sizes and stipulations. We cover those reported products and sellback sizes below.

Gold Reporting IRS SD Bullion

Selling Silver Gold Tax Implications

Often misquoted or misunderstood in the precious metal industry, maximum long term capital gains taxes on bullion and or supposedly physically backed ETFs are at a 28% rate.

But the specific rate at which you would be taxed on profitable bullion sales will depend on your specific tax bracket as well as other factors involved.

How to Sell Gold without Paying Taxes?

Other than front loading your tax payments to begin a bullion investment by using a Roth IRA, current rules are that if you sell your bullion at fiat currency prices higher than your fiat currency cost basis, the IRS is going to demand a portion of those fiat currency in capital gains taxes.

Of course you could avoid paying taxes if you sell bullion at a lower price than your original purchase price (resulting in a capital loss). By doing this you could be then allowed to deduct up to $3,000.00 USD losses against other taxable income.

As well, if the loss you have on a bullion sale is larger than $3k US dollars, you can likely continue to deduct those additional losses in subsequent year(s) to come via tax loss carryforward provisions.

Of course for specific tax guidance on bullion sales profits and or losses, you should consult professional tax counsel as we are not tax professionals ourselves here at SD Bullion.

Payment Reporting when Buying Bullion Online?

If you have bought bullion online, it is likely you have noticed various payment policies which deter customers from using large amounts of cash or cash equivalents in payment (e.g. typically discouraging $10,000 USD or more payments in cash or cash equivalents like cashier’s checks, money orders, traveler’s checks, and bank drafts). The IRS requires businesses to file Form 8300 when large cash payments are involved.

There have been various now bankrupt, poor track record bullion dealers in the past who have got themselves into hot water by allegedly laundering drug dealer cash through bullion purchases. Even some established bullion mints have been accused in the past as well as even as recently as this year (2018), for not having appropriate anti-money laundering policies in place.

Often law abiding bullion dealers in the USA resort to only receiving cash equivalent payments in small quantities, if any at all. Typically online bullion dealers lean on established financial institutions as the first layer in their Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance policies.

Typical online bullion dealer payment methods like personal bank checks, bank wire transfers, ACH, credit / debit cards, PayPal, etc. are exempt from IRS Form 8300 filings by bullion dealers as these payment methods are coming through financial institutions which should have already executed legally required KYC and AML due diligence on their respective customers.

Gold Reporting Silver Reporting SD Bullion SDBullion.com

Gold AML KYC Silver Platinum Palladium Precious Metals SD Bullion SDBullion.com

Sales Reporting when Selling Bullion Online?

When individuals sell their bullion to domestic US based precious metal dealers, there are quantity and bullion product sales to dealer thresholds for their required IRS 1099-B form filings.  

The following private bullion products, when sold by individual investors in certain quantities to US based bullion dealers, are required to be reported to the IRS.

REPORTABLE BULLION ITEM

when Selling to US based bullion dealers:

MINIMUM FINENESS

IRS 1099-B

REPORTABLE AMOUNTS

not structured

Gold bars / rounds

0.995

32.15 troy oz or more

Silver bars / rounds

0.999

1,000 troy oz or more

Platinum bars / rounds

0.995

25 troy oz or more

Palladium bars / rounds

0.9995

100 troy oz more

Gold Maple Leaf Coins 1 oz

As minted

25 troy oz or more

Gold Krugerrand Coins 1 oz

As minted

25 troy oz or more

Gold Mexican Onza Coins 1 oz

As minted

25 troy oz or more

US 90% Silver Coin Bags

As minted

$1,000 face value bag

IRS Gold Reporting Silver Reporting when selling to US bullion dealers SD Bullion SDBullion.com

Yet under current statutes, the following bullion and precious metal products can be sold to US based precious metal dealers in any quantity, and under current statutes, no IRS 1099-B forms are required to be filed by US based bullion dealers.

Silver Selling Privacy Remains on these Silver Bullion Products

The following popular silver bullion coins are fully private when sold to US based bullion dealers currently:

- American Silver Eagle Coins & ATB Silver Coins (any sizes and volumes)


- Armenian Noah’s Ark Silver Coins (any sizes and volumes)


- Austrian Silver Philharmonic Coins (any sizes and volumes)


- British Royal Mint Silver Coins (any sizes and volumes)


- Canadian Silver Maple Leaf Coins (any sizes and volumes)


- Chinese Silver Panda Coins (any sizes and volumes)


- Mexican Silver Libertad Coins (any sizes and volumes)


- New Zealand Mint Silver Coins (any sizes and volumes)


- Perth Mint Australian Silver Coins (any sizes and volumes)


Gold Selling Privacy Remains on these Gold Bullion Products

The following popular gold bullion coins are fully private when sold to US based bullion dealers currently:


- American Gold Eagle Coins (any sizes and volumes)


- American Gold Buffalo Coins (any sizes and volumes)


- Austrian Gold Philharmonic Coins (any sizes and volumes)


- British Royal Mint Gold Coins (any sizes and volumes)


- Chinese Gold Panda Coins (any sizes and volumes)


- Perth Mint Australian Gold Coins (any sizes and volumes)


Platinum Selling Privacy

Based on current statutes, you can sell any and all government minted .999 platinum bullion coins to US based bullion dealers and those government issued platinum coins are exempt from IRS 1099-B bullion dealer reporting requirements.


Palladium Selling Privacy

Based on current law, you can sell any and all government minted .999 palladium bullion coins to US based bullion dealers and those government issued palladium coins are exempt from IRS 1099-B bullion dealer reporting requirements.


Taxes on Silver Gold Bullion?   

Regardless whether or not a purchase or sale is private or IRS 1099-B reported, currently no bullion product sales are exempt from any applicable capital gains taxes (state or federal laws). The only exception currently would be selling approved IRA bullion products within your IRA, for that other rules will apply and vary depending on if your bullion IRA is a Roth ot traditional, etc.

Always consult your tax professional on any and all bullion sales losses or capital gains you may have had: past, present, or future.

Potentially Repealing Silver Gold Tax Laws?

If you believe capital gains taxes on gold and silver monies are not in line with United States Constitutional Law.

You could directly encourage your US Congressman to sign on to this developing  HR 6790 bill which could potentially repeal such future taxes if passed.

Thank you for visiting us here at SD Bullion.

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