Is selling Gold & Silver Bullion a taxable event?
 

If I were to sell bullion, is it taxed on a federal level? Could it be taxed on a state level?

How do I find out? I live in Maine.

Re: Is selling Gold & Silver Bullion a taxable event?
 

Only the profit is taxable by the Fed's and at the same rate as a short term cap gain, I think 28%. Not sure about the State of Maine angle, in Wa. we have no income tax so they get nothing from Wa. residents profits.

Sell at a loss or a wash and no fed tax.

Re: Is selling Gold & Silver Bullion a taxable event?
 

But if I buy currency with currency, how could that be taxable? I realize that gold value increases, but my dollar value also decreases......

It would be like buying dollars with dimes, wouldn't it??

Re: Is selling Gold & Silver Bullion a taxable event?
 

Would I be responsible for reporting, or the dealer? How is the transaction recorded for tax purposes???

Re: Is selling Gold & Silver Bullion a taxable event?
 

search gim for this word combo

dealer report

Re: Is selling Gold & Silver Bullion a taxable event?
 

Generally YOU are responsible to report any sale and whether it is a loss or gain.

If you're new to buying PM's keep a log of your cost basis,......so that you can "prove" whether any later sale was at a profit or loss. This is best done with obtaining a reciept at time of purchase, but "best estimate" of various costs down the line might also fly. (since most here tend to like no paper trails)

I once talked to a tax attorney and relayed how difficult it might be for someone like me who has purchased PM's for decades and over many separate transactions and can't always find an actual reciept or notation for the purchases.

He advised that when a sale was later made,......to list under "Cost Basis" on Schedule D as an "Estimated Average" of say $550.00, and under Date of Purchase as : "Various Dates".

If you at least know which year you purchased PM's and take an average price for that year,.......it should be close enough for government work if you can't track down anything definitive.

Re: Is selling Gold & Silver Bullion a taxable event?
 

sure it is, but only if you realize gain.

amount realized minus basis equals gain.

your gain is your income.

then its a question of long term short term or if the collectibles rate applies. plus you got to mix it in with the rest of your tax picture. anyhow....

check with your own cpa or lawyer, dont rely on this, its not legal advice

PS a lot of people who buy and sell physical "forget" to book their gains and losses and never pay income taxes because they "forgot." :D since in general there are no 1099s there is not much to remind people. oh and since time immemorial this has been a cash and carry trade so business records tend to be sparse too. LOL

Re: Is selling Gold & Silver Bullion a taxable event?
 

Ever since I started buying Gold and Silver I have made sure to get a receipt, even if paying in cash. This way when I decide to sell I will be able to declare exactly what my gains were on my tax forms with confidence. Pretty smart Huh. :bear_wacko:

Re: Is selling Gold & Silver Bullion a taxable event?
 

I make sure no events happen - they don't exist........:s9:

Re: Is selling Gold & Silver Bullion a taxable event?
 

I have never got a receipt and always bought in person for cash. I did buy some of the GIM Bulls and Liberty coins so I did get a receipt on those two transactions.

It is no ones business what Gold or Silver I have.

Re: Is selling Gold & Silver Bullion a taxable event?
 

Re: Is selling Gold & Silver Bullion a taxable event?
 

I never have payed any taxes at the coin shop here in IL. Selling is the same way. This goes for coins and bullion.

Re: Is selling Gold & Silver Bullion a taxable event?
 

Go to a show, and sell there. Any dealer who wants to do Federal forms is someone to walk away from.

Re: Is selling Gold & Silver Bullion a taxable event?
 

I sure hope you know how to maintain your privacy on your computer.

Btw it is spelled paid not payed. I used to make that same mistake all the time too. You live life and learn I guess? I hope I didn't come off as being an asshole.

Re: Is selling Gold & Silver Bullion a taxable event?
 

Had an experience here in northern IN where if it was a sale over $50 they wanted to fill out paperwork for a sale...I left and never did business there again.