Capital Gains Taxes on Gold

How does the IRS know you sold gold

Many investors turn to gold as a hedge against inflation and geopolitical risk, yet many don’t realize that the IRS taxes gold profits as capital gains.

Precious metal dealers must report any cash payments received for sales of precious metals by filing out the 8300 form.


Dealers are required to report profits earned from selling precious metal coins, rounds and bullion to the IRS using Form 1099-B and may help detect instances of tax evasion; individual investors are still responsible for reporting this income on their individual tax returns.

Some dealers take advantage of investors who fear being reported to the IRS in order to increase prices. Although this practice is illegal, certain unscrupulous dealers take advantage of them by charging more.

It is essential when purchasing gold from dealers to understand their policies on refunds and exchanges. Search for companies offering free, insured shipping as well as physical store locations where you can meet with staff to discuss product pricing – for instance APMEX guarantees product satisfaction while giving customers seven days to request returns or exchanges – although please note there may be an administration charge and/or restocking fee of $50 and 10% processing charge on exchanges respectively.


Individuals who sell precious metals often face capital gains taxes due to profits earned from selling these investments as earned income, much like wages or salaries. But there are ways to minimize tax liabilities; working with a financial advisor can help minimize these liabilities and lower risk associated with any large capital gains tax liabilities.

When selling precious metals such as gold and other precious metals, it’s essential that you find a professional dealer. A trustworthy dealer will pay you for your products while providing secure storage facilities. In addition, make sure your buyer possesses valid identification so as to prevent theft or fraud from occurring.

Many people receive precious metals as gifts or inheritance. If you’re in a rush to sell them, store it somewhere safe such as your home safe or bank’s safe-deposit box – then shop around for dealers who belong to professional organizations or possess excellent Better Business Bureau ratings.

Transactions that are reportable

Even though most people understand that owning gold is legal and not subject to tax at either the state or federal levels, some remain uncertain which types of bullion transactions need to be reported to the IRS – especially those purchasing it using cashier’s checks.

As a general rule, most customer sales of bullion that exceeds $1,000 face value and fall into the IRS’s list of “Reportable Items” must be reported. Furthermore, any transaction in excess of $10K in cash or cash equivalents should also be reported.

The International Council for Tangible Assets has developed guidelines to establish which transactions should be reported based on discussions with the IRS. Please be aware that these are only guidelines and can change without notice; individuals should consult a tax professional regarding any specific details concerning their individual situations.

Transactions that are not reportable

When selling coins and bullion to customers, precious metal dealers are not required to report it as part of the taxpayer’s taxes; however, if sold at a profit then capital gains taxes may apply.

Dealers are typically required to report transactions when they sell to customers in quantities that surpass specific quantity limits, using Form 8300 for reporting all cash transactions that satisfy certain conditions, not only precious metal transactions but also other business purchases.

Money Metals Exchange has yet to file Form 605, though we may eventually need to. Sales of gold bars exceeding 10 oz and silver bullion coins comprised of more than 90% silver typically trigger reportable transactions; this does not apply, however, to American Gold Eagles or fractional ounce coins.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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