Question about tax rate on Silver Eagles and Gold Buffalos

Darin

Are they taxed at the 15% rate or 28%? My accountant apparentley doesn't have many clients that sell Gold/Silver so he's not sure. He told me collectible coins are taxed at a 28% capital gains rate, I told him what I sold (mostly silver eagles, just a little 90% silver, and 2 gold buffaloes, are not considered collectible coins, just bullion coins.
So does anyone know what rate to use. It makes quite a bit of difference for me as I made a $31,000 profit on silver eagles that I had held for a long time.

guitarwes

I believe the tax rate is different depending on the time you've held them. <1 year is short term, >1 year is long term.

Consult a knowledgable accountant, especially in your case of >31K profit.

derryb

From the IRS:

"Collectibles include works of art, rugs, antiques, metals (such as gold, silver, and platinum bullion), gems, stamps, coins, alcoholic beverages, and certain other tangible property. 28% rate applies to long term holding (greater than one year). Short term gains are taxed at your personal tax rate."

found in IRS Schedule D instructions

OPA

Coins & bullion are taxed the same...makes no difference. 28% long term rate. Yes, "Uncle Sam" will thank you for his share.

Darin

<< <i>Coins & bullion are taxed the same...makes no difference. 28% long term rate. Yes, "Uncle Sam" will thank you for his share. >>



Okay, that answers it. I was under the false impression that if it were considered bullion it would be taxed at a lower rate.

Thanks everyone for the help.

Spooly

Congrats on the $31,000 profit!

SlangNRox

<< <i>Congrats on the $31,000 profit! >>




Congrats on the $22,000 profit (minus state taxes)

Kd5ddo

I thought I read somewhere that Govt issues US coins are not taxed due to the fact that they are legal tender. It was about the benefits to Silver Eagles over Maples and such. I'm guessing now that this is incorrect...?

derryb

<< <i>I thought I read somewhere that Govt issues US coins are not taxed due to the fact that they are legal tender. It was about the benefits to Silver Eagles over Maples and such. I'm guessing now that this is incorrect...? >>


Incorrect, you may be thinking of sales tax in some states. Profit/loss on sale of coins is considered a captial gain/loss (or business income/loss) and is subject to federal income tax reporting.

ricko

Derryb is correct. I am told (and this is hearsay) that there is even tax on barter. Have not needed the information, so have not researched it. Cheers, RickO

Kd5ddo

Jesus. What is this world coming to!!!

Oh well... Uncle Sam will get into your pockets any way he can...

Button pockets don't help... I've tried...