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Will I Owe Taxes After Selling Gold?

A gold Eagle, shown front and back.

Will I Owe Taxes for Selling Gold?

Regarding federal taxes, the IRS considers gold a collectible item, and you are required to pay capital gains taxes when you sell gold for a profit. When you sell precious metals, it needs to be reported to the Federal government and your state government.

How Should I Report Capital Gains to the Federal Government?

To reconcile the gains and losses reported in Form 1099-D, you will use Form 8949. If you sold or bought using a broker or barter exchange, you would use the information reported to you via Form 1099-B.

How Much Taxes will I have to Pay in Federal Taxes?

If you have owned the gold for less than one year, you will pay a short-term capital gains tax when you sell gold. Depending on your taxable income, this can be as high as 37%.

If you have owned the gold for over a year, your gold products will be subject to a long-term capital gains tax when you sell. This tax rate ranges from zero to 28%, depending on your taxable income.

How Should I Report Capital Gains to My State Government?

Many states impose income taxes applicable to capital gains.

Some states, like Florida, Alaska, and Washington, do not have an income tax. If you live and sell in these states, you will not owe state capital gains taxes on your precious metal sales.

Other states, like Oregon, California, and New York, have higher income tax rates for capital gains.

Finally, states like Arkansas, North Dakota, Indiana, and Wisconsin offer lower rates or tax exemptions for specific capital gains.

To learn more about your specific state’s laws and rules on capital gains, please consult a financial adviser or tax specialist in your state. It is always advisable to consult a tax professional to help you better understand your tax obligations for both state and federal taxes.

Quick Guides to Investing

Step 1:

Why Buy Physical Gold and Silver?

If you are concerned about the volatility of the stock market, you’re not alone. The extreme highs and lows of the stock market often lead investors towards safe-haven assets, like bullion. Historically, the Precious Metals market has an inverse relationship with the stock market, meaning that when stocks are up, bullion is down and vice versa.

Step 2:

How Much Gold and Silver Should You Have?

This question is one of the most important for investors to answer. After all, experts suggest limits on how much of any types of investments should go into a portfolio. After deciding to purchase and own Precious Metals and considering how much money to allocate, one can then think about how much and what to buy at any point in time.

Step 3:

Which Precious Metals Should I Buy?

With the frequent changes in the market and countless Precious Metal products available, choosing investments can be difficult. Some want Gold or Silver coins, rounds or bars while others want products that are valuable because of their design, mintage or other collectible qualities. Also, collectors may shop for unique sets and individual pieces for their collections.

Step 4:

When to Buy Gold & Silver

After considering why, how much, and what Precious Metals products to buy, an investor’s next step is when to buy them. This decision requires an understanding of market trends and the impact of economic factors on precious metal prices.

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