Need expert tax advice.
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  1. #1
    us
    Dec 2006
    Very Northern Left Coast
    XLT & Bigfoot
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    All Types Of Treasure Hunting

    Need expert tax advice.

    Last years taxes are done and refund is in the bank.

    But, my question is on profit made from selling precious metals.

    If I send my gold/silver to a refiner do they report it as income to IRS?

    Someone on the t-net board mentioned PM sales are not taxed, is this true?

    Is this also true for coins sold to be melted?

    My daughter starts college next Fall and i need to sell some AG/AU
    When I did yard sales I was dollardan. No yard sales where I am now.

  2. #2

    Feb 2007
    The Lone Star State
    ace 250/ Minelab SE Pro
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    Re: Need expert tax advice.

    I'm not sure but I've had this discussion with my dealer. He said something like only if it exceeds the amount of $9,000 do you need to fill out paperwork. But that is per transaction. So if you come back and sell $8,000 each time then, you know. I could be way wrong on this but that was somewhat of the dicussion. I know it doesn't help.
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  3. #3

    Apr 2008
    3,618
    448 times

    Re: Need expert tax advice.

    Yes you are liable for any taxes on the capital gains resulting from the sales. I don't know if they send the IRS a 1099 or something like that, but you still legally owe taxes on any net profits. Some people think if your coin dealer does not send the IRS anything you legally don't owe taxes, and this is just plain BS. I suppose a person is less likely to get caught if nothing is sent in to the IRS by the coin dealer, but that has nothing at all to do with respect to whether you legally owe taxes on the sale.

    I don't know about scrap, but I know that the tax rate on gold and silver coins/bullion is taxed at the rate of collectibles, which is a max rate of 28% of the gains; in other words there is no such thing as the favorable long term capital gains tax on gold/silver bullion coins/bars, even if held for over 12 months. Gold and silver ETFs also have higher than normal tax rates even though it is traded like a stock, but I don't know how they figure out what the tax rate is on those since I don't own them.

    I believe that gold/silver mining stock gains would be treated like any other stock gain, even though it does deal with gold/silver.

    I am not an expert in any way, so you should consult a CPA. Better to not trust advice on a blog.

    Just my 2 cents.

    Good luck.

    Jim

    R.I.P. Rich Hartford

 

 

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