Precious Metals Investors – Do Gold Sellers Report to the IRS?

Do gold sellers report to IRS

As precious metals remain an increasingly popular investment option, investors should understand when their purchases fall under federal tax regulations. Precious metals dealers are legally required to report customer sales under certain circumstances – specifically when customers pay in cash amounts exceeding $10,000 – so investors must understand when their purchases fall into this category.

Cash refers to greenbacks (paper money) and excludes personal checks, bank wires, or credit/debit card purchases. There are specific regulations which determine which gold coin sales must be reported to the IRS.


Many precious metal investors don’t realize their purchases of precious metals require reporting to the government. When selling bullion coins at their gold spot price such as Maple Leaves, Krugerrands or Mexican Onzas sold as capital gains on your tax return, reporting these sales must also occur as capital gains on your tax return.

Precious metal dealers are required by federal law to complete IRS 1099B forms when customers sell them certain coins or bars that the IRS considers reportable, in order to protect the country from large cash payments that could potentially be used for money laundering or other illicit activities. These laws exist as safeguards to prevent large cash payments being used for illegal activities like money laundering or drug smuggling.

American Gold Eagles are exempt from both 1099B and 8300 form reporting requirements because they fall into the collectibles category, making them popular choices among investors. If unsure whether your coin investments fall into this category, seek guidance from an experienced tax professional.


In the United States, bullion sales are subject to taxes and must be reported. Even if purchasing coins privately without using dealers’ services, you must still report this transaction with the IRS.

For most individuals, any profit on the sale of precious metals must be reported as a capital gain on your income tax return. The amount owed in taxes will depend on their current fair market value (FMV) minus your original purchase price and selling expenses.

If your gold coins or bullion qualify as collectibles, the profit on their sale will be taxed at 28%. Dealers are generally required to file Form 1099-B with the IRS on behalf of customers if selling American Gold Eagles and 1-oz Maple Leaf, Krugerrand or Mexican Onza coins in quantities of twenty five or more.


The Internal Revenue Service treats gold bullion bars and coins as collectibles similar to art or antiques, making any profits made when selling these precious metals taxable. Coin dealers must report sales where customers paid more than $10,000 cash.

Reporting requirements apply to sales of 1-oz Gold Maple Leaf coins, 1-oz Krugerrands and any US coin composed of 90% silver. Dealers are required to file form 8300 when customers sell these kinds of coins in quantities of 25 or more in one transaction.

As a result, investors must understand if their sale qualifies as reportable. Unscrupulous gold buyers may utilize fee structures to avoid reporting obligations; such fees might take the form of appraisal, shipping and handling charges which reduce total value for sale and potentially require unnecessary taxes to be paid by investors. Many investors therefore opt to purchase bullion products through licensed dealers that comply with all federal and state tax laws when purchasing bullion products.


When selling gold bullion, your profits must be declared as capital gains and claimed as such. This calculation involves taking the selling price minus its original cost and any associated selling expenses to determine your capital gain. Depending on how long you held onto it before selling, short or long-term capital gains taxes may apply based on when and why it was sold.

Precious metal dealers are legally required to report sales of certain bullion to the IRS in the form of 1099-B forms; for transactions exceeding $10,000 cash transactions they are also required to file an 8300 form separately. These policies were established during the 1980s in order to monitor large commodity exchanges and prevent money laundering schemes that may damage our economy. Pieces that require reporting include fractional denomination gold coins, bars, 1-ounce Gold Maple Leafs and 1-ounce Gold Krugerrands.

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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