woodiewood1 said:
2wealfth Man said:
Don't know if this impacts anyone's strategy or reasons for holding precious metals but sales of bullion and foreign coins are subject to IRS reporting via a 1099-B. US gold coins are exempt from this reporting (assuming because they are legal currency).
If that was the case, since the Australian silver coins are legal currency, would that not be the same situation?
Here's what I found. "Holdings in gold, silver and other metals, regardless of their formsuch as bullion coins, bullion bars, rare coinage, or ingotsare subject to capital gains tax. The capital gains tax is only owed after the sale of such holdings and if the holdings were held for more than one year.".
Brokers issue Form 1099-B, in fact the name of the form is "Proceeds from Broker and Barter Exchange Transactions." While everyone is aware of that form reporting sales of stocks and bonds and mutual funds, commodities would also be reported if sold through a broker. Having said that, I think I read on the SD Bullion website or the JM Bullion website (if one reports I am sure the other does) that they will report sales on Form 1099-B of
some precious metals, depending on the kind and quantity sold. There are various thresholds for reportable sales. Some precious metals are exempt from reporting, like American Eagle coins.
As to your last line about capital gains tax and held for more than a year, if held less than a year it would be a short-term gain, subject to whatever tax bracket you are in, if over a year, then long-term capital gain. But precious metals are not afforded the same maximum capital gain tax rate that stocks, land, etc. get. but carries a maximum capital gains tax rate of 28% rather than 20%.
