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For those just starting out investing or thinking about investing in precious metals you should be aware of the IRS guidelines on reportable sales to the IRS from a precious metals dealer. So let’s just get to it. Here is what I have found out about precious metals and taxes.

First off, currently if you buy precious metals from a dealer within the United States they are not required to report sales transactions to the IRS. When purchasing physical gold or silver in bullion, bars, coins, or rounds. These are the most common forms of gold and silver bought for investing purposes. However when you go back to any dealer to sell your precious metals, there are certain types of transactions that are required by US law to be reported back to the IRS. This means the dealer will be sending you an IRS form 1099-B reporting the sale of your transaction and a copy of that 1099-B will go to the Internal Revenue Service.

• 1 ounce

• ½ ounce

• ¼ ounce

• 1/10th ounce

Are not reportable to the IRS in ANY Quantity, any face value or total in actual cash value. Example: you have $10 million dollars worth of US. Gold Eagles the entire amount you sold it for ($10 million) is not required by law to be reported to the IRS by the precious metals dealer.

2. United States American Silver Eagle Coins.

Which are available only in one ounce silver coins, are also exempt from Internal Revenue reporting requirements when selling back your Silver Eagles. Same as the Gold Eagles there is no limit on the face value, actual cash value or quantity of Silver Eagle coins sold back. You can sell back 50, 500, 5000 or 5 million of these coins and there is nothing required from the precious metals dealer to report this transaction to the IRS.

In summery United States gold and silver Eagles represent the only US Coins and only form of precious metal investment that carry no reporting restrictions to the IRS when sold. Making these the most private precious metal investments you can accumulate within the United States.

• Mexican Gold Onzas (less than 25 ounces)

• Canadian Gold Maple Leafs (less than 25 ounces)

• South African Gold Krugerrands (less than 25 ounces)

Reason for the (above) less than 25 ounce limit requirement is because these coins were traded as commodities contracts back in the 1980’s.

Any other form of gold bullion, bars, foreign & domestic minted coins or rounds that are sold with a weight less than 1 Kilogram (32.15 ounces)

Any other form of silver bullion, minted coins, rounds bars that are sold…

• Have a total weight of 1000 ounces or less.

• * Any buy back transaction with a total sales amount of $9,999.99 dollars or less.

• Silver “Junk” coins (dimes, quarters and half dollars) with a face value of less than $1000.00 US Dollars.

* Reason on the total sales amount (less than $10,000.00) has nothing to do with the quantity of silver sold back. But rather the IRS tracks abusers dealing in large amounts of cash such as money launder’s etc.

• Mexican Gold Onzas (greater than 25 ounces)

• Canadian Gold Maple Leafs (greater than 25 ounces)

• South African Gold Krugerrands (greater than 25 ounces)

• Any other form of Gold 1 kilogram (32.15 ounces) or greater. (Except Gold Eagles)

• Any form of Silver with a weight greater than 1000 ounces. (Except Silver Eagles)

• Any Silver buy back transaction greater than $10,000.00 US Dollars. (Except Silver Eagles)

• Silver “Junk Coins” with a Face value greater than $1,000.00 US. Dollars

• Any multiple daily or every 2 -3 days buy back transaction, that raises suspicion to a dealer that your sell back transactions are actually part of the original transaction to conceal the true amount for IRS reporting purposes.

Example: you have 50 ounces of gold so you think if you sold it in smaller quantities say 25 ounces per day x 2 days they won’t report the profit to the IRS. Dealers are required by law to report such transactions.

Capital gains required or not by any dealer to be reported, also become your responsibility to report to the IRS. The tax information above is relevant only to Citizens and Residents within the United States. For those outside the United States different tax laws or rules might apply. Always seek professional tax advice regardless which country you reside in or are responsible to pay income taxes too.

Tom Genot -

For informational, news, articles and videos for investing in gold and silver and where the best places are to buy it. You will also find information for preparing and protecting you, your family and your assets from the pending economic crises and destruction of the US dollar. Author Tom Genot, provides information and resources helpful to everyone. Insure you’re prepared beforehand. Check us out at www.coinbullion.net