Do You Have to Pay Tax on Gold Investments?
If you are a gold investor looking to maximize profits and minimize taxes, you are not alone. Planning your taxes on gold investment smartly is critical to success. It is also a great way to make the most of your investment. Most people investing in gold don’t know if they have to pay taxes or not, especially the ones investing for the first time.
Tax on gold is something people don’t know about because they don’t talk about it often. As the popularity of gold as an investment commodity soars amid uncertain economic conditions and financial turmoil, people want to learn more and more about gold investments, and taxes are one of the most important aspects.
This blog will explain if you have to pay taxes on gold investments. Keep reading to learn more.
Tax Implications on Selling Gold
If you are physically holding precious metals like gold, the Internal Revenue Service (IRS) considers their capital assets, which are specifically categorized as collectibles.
Regardless of the form, you are holding the gold in—bullion coins, rare coinage, bullion bars, or ingots—they are subject to capital gains tax. You will have to pay the tax when you sell the gold commodity and if you were holding it for more than a year.
How Much Tax Do You Have to Pay?
The sale of precious metals like gold is taxed differently compared to other tradable financial securities like stocks and bonds. Physical gold assets are subject to a capital gains tax equal to your marginal tax rate, up to a maximum value of 28 percent.
Tax Reporting Requirements
Unlike other commodities, you don’t have to pay taxes on gold the minute you close the sale. Instead, the sale of physical gold needs to be reported on Schedule D of Form 1040 on your tax return. You also have to submit Form 1099-B at the time of sale to the IRS, as such sales are categorized as income.
Leading Gold and Silver Investment Company
Orion Metal Exchange is one of the most trustworthy investment companies out there for all your gold and silver investment companies needs. Whether you’re looking to buy, sell, or exchange gold, you can get in touch with us.