Silver bullion, when sold for a profit, does not necessarily mean all fiat US dollar currency gains will get taxed at a 28% maximum tax rate.
Learn the different treatments between silver capital gains and silver capital losses and how your tax situation could be affected by either.
Not all silver bullion investors sell to us here at SD Bullion is for a fiat currency gain. But knowing how to take better advantage of any potential silver losses could help an investor's bottom line.
Learn more about current silver taxation in the USA.
The following info is for educational purposes only and should never be considered financial advice. Exclusion from US bullion dealer reporting requirements does 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 may need.
Silver Taxation | Silver Bullion Dealer Reporting Requirements
Like any collectible bought and later sold for a profit, current laws of the United States are that if you purchase and then later sell silver for a fiat currency profit. The powers that be will want a cut of those fully fiat US dollar profits.
Here is the IRS in 2018:
Gold, silver, stamps, coins, gems, etc. These are capital assets except when they are held for sale by a dealer. Any gain or loss from their sale or trade generally is a capital gain or loss.
( Silver Taxation source - page 67 )
Silver Taxes When Selling Profitably
The IRS wants a percentage of any fiat currency gains silver investors make. For example, if you buy Silver Eagle coins at $17 oz then sell them years later at $28 oz, the IRS will want a portion of the $11 profit per ounce made.
Current rules for profitable silver taxes owed to the IRS are at a Maximum Rate of 28% but dependent on your tax bracket can be much less.
Most people reading this SD Bullion blog, with fiat US dollar gains in silver will often end up in lower tax brackets. They usually taxed only just over half of the maximum rate (e.g., 15%) on fiat currency collectible profits even when selling silver bullion for gains (given their tax bracket is so low).
So for our hypothetical tax example above, a silver investor may only owe
To know how much your potential silver tax rate would be, one would have to know your income for the year, as well as a few other pertinent tax-related matters (single, married, filing jointly or separately? etc.).
Silver Tax Loss Deductions
Current rules for silver bullion sale losses allow US citizens to write off up to $3,000 fiat US dollars per year. With tax writeoff carryovers year after year if the silver loss is large enough. By filing capital loss deductions, investors can lessen their yearly tax bill.
Consult your tax professional to learn how much you might be able to write off in taxes if you sell silver bullion at a loss. Or to determine how much you may owe after profitably selling silver for a fiat currency gain over your cost basis.
Learn more about silver bullion taxes and bullion dealer reporting rules here.
Be sure to pick up our free best practice free ebook on how to both buy silver and sell silver safely via your email inbox: SD Bullion Guide.
Thanks for visiting us at SD Bullion.