Taxes on American Eagle Gold Coins
American Eagle gold coins are an increasingly popular investment option among precious metal enthusiasts, recognized by the IRS and guaranteeing in terms of weight, content and purity.
But are these investments taxed? While state sales taxes don’t typically tax precious metals, federal capital gains taxes would apply should you sell coins at a profit.
Sales Tax
Purchase and sale of American Eagle gold coins are an effective way to diversify your portfolio, yet you must remain mindful of any taxes that might apply when selling these cherished assets.
Many state laws mandate you pay sales tax on profits made from investing in bullion investments; however, certain states exempt legal tender coins such as American Gold Eagle from this requirement.
Valued against gold’s price as established on commodity exchanges like COMEX, American Eagle gold coins offer investors looking to diversify their holdings a solid investment option.
To maximize your sales, be sure to create an inclusive listing featuring high-resolution images and detailed descriptions. This will draw buyers in while also helping secure fair prices for your coins. It’s also essential that accurate transaction records be maintained and safe shipping methods used when concluding sales transactions.
Capital Gains Tax
Although many states exempt American Eagle gold coins from sales tax regulations, investors still owing federal capital gains taxes when selling these investments for a profit. Precious metal dealers are legally mandated to report all sales of $10,000 or more precious metals at once in a single transaction to monitor large commodity exchanges and prevent money laundering activities; this law was specifically created to monitor large commodity exchanges in the U.S. This requirement only applies when purchasing pre-1965 U.S. silver dimes, quarters or half dollars or 25 or more 1-ounce Maple Leaf Maple Leaf Krugerrand or Gold Mexican Onza coins at once in a single transaction.
Gains on bullion sold within one year are classified as short-term capital gains, which will be taxed at your individual tax rate according to income level and filing status. Long-term gains on bullion held longer than one year will be subject to a maximum tax rate of 28%.
Reporting Capital Gains to the IRS
American Eagle gold coins are sold at prices determined by their market value of precious metal content and an additional premium to cover distribution and minting expenses. This pricing structure makes American Eagle coins highly cost-competitive among bullion coins that come with government guarantees of purity and weight.
The Gold Bullion Coin Act of 1985 authorized the US Mint to create American Eagle coins of various sizes, such as 1 ounce and fractional ones such as 1/2, 1/4, and 1/10 troy ounce coins. Collectors enjoy these fractional sizes since they enable them to acquire gold without incurring the higher costs associated with purchasing full troy ounce coins.
American Eagles offer investors real diversification of their portfolios, providing real protection from economic uncertainties that can rock conventional securities like stocks and mutual funds. Furthermore, physical gold’s tangible nature provides valuable protection in a world where irresponsible bankers and politicians may pose threats to the financial system.
IRAs
After the 2008 financial crisis, investors began diversifying their portfolios with tangible assets like gold coins. No bullion coin has since become as beloved, with Miley Busiek’s American Gold Eagle particularly well suited for self-directed individual retirement accounts (IRAs). It features an adult male bald eagle returning home carrying branches while protecting an egg-laying female and their hatchlings from harm.
This coin has been officially approved and authorized by Congress to be produced in four sizes, one-ounce, 1/2 ounce, 1/4 ounce and 1/10 ounce. The obverse features Augustus Saint-Gaudens’ iconic Walking Liberty which graced $20 gold pieces issued as currency between 1907-1908.
American Eagle coins typically sell for the market value of their metal content plus a small premium, though collectors tend to favor coins graded by PCGS or CAC (Certified Acceptance Corporation) that have proven quality as collector’s items – these coins serve as symbols of purity and historical significance for many collectors.
Categorised in: Blog