Post by jeffolie on Apr 18, 2011 10:32:08 GMT -6
Tax reporting: selling your gold/silver
Income Tax law, income tax enforcement are difficult, legal issues. The below piece should not be accepted as legal nor final on these issues.
I plan on investigating income tax law and enforcement when I finally decide to sell because these change.
=============================================
IRS 1099 Form - Sell Gold Sell Silver Privately
Privacy is very important to physical silver and gold investors. For some bullion investors, ensuring themselves a private sale is their most important objective.
The question always asked is - When I sell my gold bullion or silver bullion, is it a private transaction, or is it reported to the IRS?
When an investor sells their gold bullion or silver bullion to a dealer, some of these trades are private, some are not. If privacy is of the utmost importance to you as an investor, you should know your facts and act accordingly.
The powers that be require dealers to fill out something called an IRS 1099 Form, more accurately for silver and gold bullion dealers, it is the IRS 1099 B Form.
When you sell your bullion back to a dealer, the pertinent questions are:
What form of gold and or silver bullion you are selling?
What quantity of silver bullion and or gold bullion are you selling?
If the sale is of a reportable form of bullion, yet the quantity you are selling doesn't meet today's IRS 1099 B Form reporting requirements then... When was the last time you sold this small amount and form of silver and or gold bullion to that specific dealer?
Let us tackle the simple questions first, numbers 1 and 2. What form and quantity versus IRS 1099 B Form reporting requirements.
Remember, this is private investor sales (your sale) of gold and or silver bullion to dealers.
Gold Bullion - IRS 1099 B Form
Private gold bullion, 1099 Form not required, any quantity:
US Gold Eagle Coins 1 oz - 1/2 oz - 1/4 oz - 1/10 oz
US Gold Buffalo Coins 1 oz
Reported gold bullion, 1099 Form required, foreign coins sold in quantities of:
Canadian Gold Maples 25 oz +
South African Krugerrands 25 oz +
Mexican Gold Coins 25 oz +
Gold Austrian Philharmonics 25 oz +
Chinese Gold Pandas 25 oz +
Etc, etc.
Reported gold bullion, 1099 Form required, fine gold bars sold in quantities of:
One kilo in total (32.15 troy oz ) or more per transaction
--------------------
Silver Bullion - IRS 1099 B Form
Private silver bullion, 1099 Form not required, any quantity:
US Silver Eagle Coins
Canadian Maple Leaf Silver Coins
Austrian Philharmonic Silver Coins
Mexican Libertad Silver Coins
Chinese Panda Silver Coins
Etc. etc.
Reported silver bullion, 1099 Form required, silver bars/rounds .999 sold in quantities of:
1000 oz or more per transaction
Reported junk silver, 1099 Form required, bags sold in quantities of:
$1000 face value bag or more of 90% silver coins
--------------------
These are the IRS 1099 B Form reporting requirements as they stand April 2011.
Things can always change, so if privacy is critical to you as a bullion investor, you will want to keep on eye on any new changes to dealer reporting requirements.
Lots of bullion investors know current reporting requirements and try to play slick selling in small quantities to dealers in the hopes of liquidating positions without a 1099 B Form.
This brings me to the important 3rd question a dealer asks themselves when buying bullion from private investors: When was the last time you sold this small amount and form of silver and or gold bullion to that specific dealer?
If the dealer notes a habitual pattern in your sales (timing/form/size), where it appears you may be attempting to avoid a 1099 B Form and reporting requirements, the dealer or broker is required to fill out and file a Suspicious Activity Report.
For example, if you sold me back 20 gold maples 5 days in a row, what do you think I'm thinking? In this case, it's my ass or yours? I'm not getting taken from my desk in handcuffs. So anyone out there holding reportable forms of bullion, if you want to make your sales back to dealers as private as possible. Use your head!
everhedge.blogspot.com/2011/04/selling-gold-selling-silver-privacy-irs.html
Income Tax law, income tax enforcement are difficult, legal issues. The below piece should not be accepted as legal nor final on these issues.
I plan on investigating income tax law and enforcement when I finally decide to sell because these change.
=============================================
IRS 1099 Form - Sell Gold Sell Silver Privately
Privacy is very important to physical silver and gold investors. For some bullion investors, ensuring themselves a private sale is their most important objective.
The question always asked is - When I sell my gold bullion or silver bullion, is it a private transaction, or is it reported to the IRS?
When an investor sells their gold bullion or silver bullion to a dealer, some of these trades are private, some are not. If privacy is of the utmost importance to you as an investor, you should know your facts and act accordingly.
The powers that be require dealers to fill out something called an IRS 1099 Form, more accurately for silver and gold bullion dealers, it is the IRS 1099 B Form.
When you sell your bullion back to a dealer, the pertinent questions are:
What form of gold and or silver bullion you are selling?
What quantity of silver bullion and or gold bullion are you selling?
If the sale is of a reportable form of bullion, yet the quantity you are selling doesn't meet today's IRS 1099 B Form reporting requirements then... When was the last time you sold this small amount and form of silver and or gold bullion to that specific dealer?
Let us tackle the simple questions first, numbers 1 and 2. What form and quantity versus IRS 1099 B Form reporting requirements.
Remember, this is private investor sales (your sale) of gold and or silver bullion to dealers.
Gold Bullion - IRS 1099 B Form
Private gold bullion, 1099 Form not required, any quantity:
US Gold Eagle Coins 1 oz - 1/2 oz - 1/4 oz - 1/10 oz
US Gold Buffalo Coins 1 oz
Reported gold bullion, 1099 Form required, foreign coins sold in quantities of:
Canadian Gold Maples 25 oz +
South African Krugerrands 25 oz +
Mexican Gold Coins 25 oz +
Gold Austrian Philharmonics 25 oz +
Chinese Gold Pandas 25 oz +
Etc, etc.
Reported gold bullion, 1099 Form required, fine gold bars sold in quantities of:
One kilo in total (32.15 troy oz ) or more per transaction
--------------------
Silver Bullion - IRS 1099 B Form
Private silver bullion, 1099 Form not required, any quantity:
US Silver Eagle Coins
Canadian Maple Leaf Silver Coins
Austrian Philharmonic Silver Coins
Mexican Libertad Silver Coins
Chinese Panda Silver Coins
Etc. etc.
Reported silver bullion, 1099 Form required, silver bars/rounds .999 sold in quantities of:
1000 oz or more per transaction
Reported junk silver, 1099 Form required, bags sold in quantities of:
$1000 face value bag or more of 90% silver coins
--------------------
These are the IRS 1099 B Form reporting requirements as they stand April 2011.
Things can always change, so if privacy is critical to you as a bullion investor, you will want to keep on eye on any new changes to dealer reporting requirements.
Lots of bullion investors know current reporting requirements and try to play slick selling in small quantities to dealers in the hopes of liquidating positions without a 1099 B Form.
This brings me to the important 3rd question a dealer asks themselves when buying bullion from private investors: When was the last time you sold this small amount and form of silver and or gold bullion to that specific dealer?
If the dealer notes a habitual pattern in your sales (timing/form/size), where it appears you may be attempting to avoid a 1099 B Form and reporting requirements, the dealer or broker is required to fill out and file a Suspicious Activity Report.
For example, if you sold me back 20 gold maples 5 days in a row, what do you think I'm thinking? In this case, it's my ass or yours? I'm not getting taken from my desk in handcuffs. So anyone out there holding reportable forms of bullion, if you want to make your sales back to dealers as private as possible. Use your head!
everhedge.blogspot.com/2011/04/selling-gold-selling-silver-privacy-irs.html