Tax obligations for the sale of precious metals do not expire at the time the sale takes place. Instead, sales of physical gold or silver must be reported on Schedule D of Form 1040 of your tax return. For sales of gold ingots and ingots to be considered declarable, each individual piece of ingots must have a fineness of at least. Similarly, for the sale of silver ingots and cartridges to justify notification, each piece of silver must have a fineness of at least.
When it is necessary to report a purchase of gold, the dealer will be the one to report it. Form 8300 requires information about the gold purchaser, including name, social security number, address, and license number. If part of the form is left blank, the dealer must still send the form to the IRS. In another example, someone walks into a local gold coin store and uses cash (paper money) to pay for gold coins.
Reportable sales (again, customer sales to dealers) apply to 1-ounce Gold Maple Leafs, 1-ounce Krugerrands, and 1-ounce Mexican ounce in quantities of twenty-five or more in a single transaction. Learn what transactions selling gold, platinum, palladium and silver bullion must be reported to the IRS (for tax purposes) and what type of bullion purchases are governed by current anti-money laundering laws (applicable to suspicious or high-volume transactions in cash and cash equivalents). That law was repealed in 1974 and is only relevant today with respect to certain cases of buying gold. Most of us are neither public accountants nor tax accountants, however, buyers of Atlanta gold and coins will be happy to answer any questions you may have.
For those who buy gold in the United States, there are some federal laws that you should be aware of specifically, the regulations that govern which purchases of gold should be reported to the government. Don't fund your precious metals IRA with fractionated gold or silver, as they are also unnecessarily expensive. If you are a U.S. citizen and believe that capital gains taxes on savings in gold and silver are not in line with constitutional law, you may also encourage your U.S.
Congressman to pass this bill H.R. 6790, which could repeal those future taxes if passed. The amount of gold purchased, how it is purchased, the time frame within which it is purchased, and other legal points will determine the reporting requirements for gold purchases. Most competent high-volume ingot dealers want to avoid the need for manual inspections, which would be daily, which could result in additional costs, time and energy requirements on the part of ingot dealer staff in order to properly report any suspicious transactions involving the purchase of gold, platinum, palladium, silver bars or other customer purchase transactions to government agencies.
Read on for information on when you should report a purchase of gold, offered by the experienced professionals at First National Bullion and Coin.