The Internal Revenue Service (IRS) does not tax purchases of physical gold and silver. State and local sales taxes vary; speak with your in-state tax professional for specifics regarding your situation.
The IRS taxes physical gold and silver as collectibles, meaning the capital gains taxes owed differs depending on how long you hold the metals. If you sell gold for a profit within one year of making the investment, then you will pay the standard capital gains rate based on your income.
If you sell gold at a profit more than one year after the date of purchase, then your capital gains rate jumps to 28%. You are allowed to subtract transaction-related fees when calculating the capital gains taxes owed.
If you sell gold for a loss at any time, then you are not required to pay capital gains taxes. One benefit of gold investing is that the “wash sale” rules that apply to stocks and bonds do not carry over to precious metal investments. This means you can sell your metals at a loss at any time and immediately jump back into the market.
For answers to tax-related questions specific to you, call your local tax adviser. If you need to pay capital gains taxes, then you’ll need IRS Form 1040, Schedule D. To buy or sell gold directly through the Certified Gold Exchange call (800) 300-0715 or go to www.CertifiedGoldExchange.com today.