Gold Tax Rates and Collectible Treatment Breakdown By: Jeff Clark, Senior Editor, Casey’s Gold and Resource Report Proper planning with your finances is incomplete until you consider the endgame consequences of your investment decisions today. So, what are the tax consequences of selling gold, gold ETFs, and gold stocks? There’s lots of conflicting and inaccurate tax information on the Internet about this. We know of one site that claims the sale of silver Eagles is exempt from capital gains tax due to some obscure law (not true). So, let’s nail down the current tax rules for selling gold in the U.S. [The following information pertains to U.S. taxpayers only and is not intended as nor should be considered personal tax advice. Always consult a financial planner and/or tax professional before investing.] * The IRS considers gold a “collectible” and will tax your capital gains at a 28% rate. This designation includes all forms of gold (other than jewelry), such as... All denominations of gold bullion coins and numismatic/rare coins, gold bars, and gold wafers ETFs like GLD, SLV, etc. (closed-end funds have different rules; see below) Any electronic form of gold like GoldMoney and Bullion Vault Any “paper” or certificate forms of gold, such as Perth Mint Certificates and EverBank accounts All forms of pool gold, rounds, and commemorative coins And the same designation and rules apply to silver, platinum, and palladium. * “Reporting” requirements can be confusing. It is true that precious metals dealers aren’t required to report certain small sales to the IRS – but that doesn’t relieve you of the obligation. If you sold one gold or silver coin to your local dealer, he is not obligated under current regulation to report the sale. But selling at a profit requires you to report it and pay 28% tax on your gain. Keep in mind that the Patriot Act obligates a dealer to report any “suspicious customer activity.” Therefore, don’t expect a wink from your dealer if you proclaim you won’t be reporting your sale or ask him to “book” only half the coins you sell him. There are people sitting in prison who’ve tried this. * Gold stocks are not designated as a collectible and are therefore subject to the standard capital gains tax rates like all other stocks. * Gold jewelry sales are not reportable. This makes the Heirloom Collection an attractive consideration and an excellent diversification maneuver (for both financial and romantic reasons!). * We wouldn’t advise making your investment decisions based solely on tax considerations. You should own both gold and gold stocks for different reasons – gold for wealth protection and gold stocks for profit potential. * There’s a lobbying arm for our industry, the Industry Council for Tangible Assets. Their efforts are mostly for dealers, but their website contains valuable information on this topic. http://commoditybullmarket.blogspot.com/2010/06/gold-tax-rates-and-collectible-tax.html