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Irons

Irons

Well-known member
Joined
Sep 8, 2007
Messages
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Location
Dark side of the Moon
The IRS considers Gold to be a collectible and sets a capital Gains tax of 28% on profits from the sale. There are some exemptions. For example, legal tender US Gold coins are tax exempt.
There are exemptions for unrefined precious metal concentrates.

Perhaps some of our legally astute members can provide some details.

The end of the year is coming up soon. Time to sort things out.

And then, there's the Governor's piece of the action....
 
Just figured out your avatar.

Gabby Hayes

Nice touch!

Harold
 
Hello everyone. I am a new member today, been doing tons of reading over the past few weeks on scrapping computer parts. Good work here!

I am very interested in the tax side of things as well. Anyone in the US who has a business in the gold refining business, I would love to hear it. Obviously having to pay 28% on you take is a huge hit to being able to consider this.

It does look like the tax rate in the US is 28% for precious metals, based on an article I just read on about.com. I was hoping gold would fall into the long-term capital gains rates, but it appears the government considers gold a Collectible Asset.
 
I would have assumed that most tax agencies would view any metals of a trading business as stock and value it as such, this is put into profit side of the business which is then debited by any expenses and costs, should there be a surplus, ie profit, then tax is due on that.
 
This is a good link from the IRS I found today...

http://www.irs.gov/publications/p544/ch02.html#en_US_2013_publink100072542

Precious Metals and Stones, Stamps, and Coins

Gold, silver, gems, stamps, coins, etc., are capital assets except when they are held for sale by a dealer. Any gain or loss from their sale or exchange generally is a capital gain or loss. If you are a dealer, the amount received from the sale is ordinary business income.
Click to expand...
The "dealer" is an interesting thing and from my limited knowledge how the government likes to treat companies that primarily deal in that business. So if you were a 100% gold refining shop I think that would make you a "dealer" as that is your business. And oh-my taxed at insane regular rates. But I presume they are capital assets if your business does something entirely different. Again I'm not a lawyer but I have researched "dealers" when it comes to the IRS before.
 
Keep in mind that Irons wrote the original post in 2007. Tax rates on capital gains have been much more favorable in recent years. My capital gains were taxed at 0% in 2013. Your situation may be different.

Dave
 
Of all the things a refiner should discuss i would leave this subject alone like the plague. I will tell you that if your a refiner and you have structured your business structure properly you are not considered a precious metals dealer. You are a recycler just like if you owned a scrap yard were you bought alum or steel. Now if you sell and buy gold you will fall into a different class.
 
Palladium said:
Of all the things a refiner should discuss i would leave this subject alone like the plague. I will tell you that if your a refiner and you have structured your business structure properly you are not considered a precious metals dealer. You are a recycler just like if you owned a scrap yard were you bought alum or steel. Now if you sell and buy gold you will fall into a different class.
Click to expand...

:mrgreen:

If you store your Gold at a Bank, it has to be reported to the IRS, if you keep it elsewhere, you don't.
 
FrugalRefiner said:
Keep in mind that Irons wrote the original post in 2007. Tax rates on capital gains have been much more favorable in recent years. My capital gains were taxed at 0% in 2013. Your situation may be different.

Dave
Click to expand...

Thanks for bringing up that point. 8)
 
Seems like a good idea to take some buttons to a local place and trade for coins, then maybe into dollars later if you need too.
 
My capital gains taxes has remained at zero for my entire life.

Works that way when you have no capital to make any gains, (or losses for that matter).
 
Code: 
i buy my scrap (dont pay tax)
i take the good stuff off my scrap and remove the PM's (dont pay tax)
i never sell my PM's, but do sell my scrap (dont pay tax)
if i ever get asked to pay tax (i wont pay tax)  :lol: 
to many taxes (i hate tax)

message coded so its not indexed by search bots
 
I think I read somewhere that, if you buy and sell US Silver and Gold Eagles they are treated differently since they are legal tender. Most of my stored bullion is 1964 and earlier 90% US Silver coinage.

Since I never sell any of it I don't have to report a gain (or loss) on it anyhow, regardless of how it's classified.
 

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