Taxes and Bullion

We understand that many investors and collectors want to maintain their privacy while making purchasing decisions related to buying precious metals. Like most everything you own or use, bullion is a capital asset, and as such there is no requirement to report your purchases, even if the bullion has listed monetary value. All taxes are assessed based on state sales tax regulations at point of purchase, and no additional taxes are required while in possession of your precious metals. Some states even allow for tax-free sales of gold and silver, so it's best to research the regulations where you live.

However, if you intend to sell more than $10,000 worth of precious metal (to Bullion.com, or any dealer) we must file a Form 8300 with the IRS. This form is used to combat money laundering and other illegal activities.

If you are considering selling your gold, silver, platinum bullion, it is important to understand your transaction’s tax implications in relation to capital gains taxes. Failing to report your financial gains to the IRS could result in severe consequences. If you have had the asset for less than one year, you would be required to pay the short-term capital gains tax rate, the same as your ordinary income tax rate; if you have had the asset for more than one year, you would be required to pay the long-term capital gains tax rate, which is generally lower than the short-term rate. This is one reason why most investors recommend purchasing precious metals for long-term holdings.

What are Capital Gains? According to the Internal Revenue Service (IRS), when you sell a capital asset, the difference between the adjusted basis in the asset and the amount you received from the sale is a capital gain or a capital loss. Generally, if you sell an asset you received as a gift or inheritance (for free), or if you sell the asset for more than you purchased it for, you have a capital gain which must be reported on your taxes. Losses from the sale of personal-use property, such as your home or car, are not tax deductible.

If you are planning to sell your bullion, it is important you understand the tax implications. Because of capital gains, all sales of precious metals must be reported on your tax return, including any profits you make from the sale. While there is no limit on how much you can purchase without reporting it, any sales must be reported to the IRS. By understanding and following these tax requirements, you can ensure that you comply with the law and avoid any potential penalties or fines. If you have any questions we recommend consulting a tax professional for more details.