Bullion dealers are not required to inform any government agency of any bullion purchase transactions that comply. When investing, many people try to find ways to buy gold and silver tax-free. We understand that many investors and collectors want to maintain their privacy when making buying decisions related to buying and selling gold and silver. However, the IRS requires that we report individual sales and some repurchase transactions.
If you are a U.S. citizen and believe that capital gains taxes on gold and silver savings are not in line with constitutional law, you may also encourage your US congressman to sign this developing bill HR 6790 that could repeal such future taxes if passed. As for the second special scenario, if you inherit gold or silver, the cost basis is equal to the market value on the date of death of the person from whom you inherited the metals. You can buy duty-free gold and silver on Bullion Exchanges online if you place an order in Alaska, Delaware, New Hampshire, Montana and Oregon.
That means people in the 33%, 35% and 39.6% tax brackets only have to pay 28% for their physical sales of precious metals. Under certain circumstances, the dealer must file a Form 1099-B with the IRS to report income paid to a non-corporate seller of precious metals. As mentioned above, the sale of precious metal coins, cartridges and ingots can serve as an additional source of income for many customers. The IRS has specific rules that determine which sales of precious metals require the dealer to file this form.
One of the purposes of IRS Form 1099-B is for a precious metals agent to report profits from customer sales to the distributor of any of the precious metals on the IRS reportable items list. When a consumer sells a reportable amount of bullion or specific coins, precious metals traders must file Form 1099-B with the IRS. Failure to comply with reporting requirements may result in the IRS issuing monetary fines or even criminal charges against the precious metals seller and the customer. While the law may say that you can sell gold and silver without paying taxes, that doesn't mean that it translates into practice with the IRS.
Do not finance your precious metal anger with fractionated gold or silver, they are also unnecessarily expensive. Most investors don't have first-hand knowledge of these matters; consequently, when precious metals traders talk about cash reports, forms 8300 or 1099, investors can't know that they might not be listening to the whole story. The following are guidelines provided by ICTA related to the sale of precious metals, and these guidelines, as well as the IRS rules, are subject to change at any time without notice. The amount of taxes due on the sale of precious metals depends on the basis of the cost of the metals themselves.
The International Council on Tangible Assets (ICTA) has published guidelines for precious metals transactions to be reported to the IRS based on negotiations with the IRS.
