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Question about tax rate on Silver Eagles and Gold Buffalos

DarinDarin Posts: 7,023 ✭✭✭✭✭
in Precious Metals
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.

Comments

  • guitarwesguitarwes Posts: 9,266 ✭✭✭

    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.

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  • derrybderryb Posts: 36,792 ✭✭✭✭✭
    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

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • OPAOPA Posts: 17,119 ✭✭✭✭✭
    Coins & bullion are taxed the same...makes no difference. 28% long term rate. Yes, "Uncle Sam" will thank you for his share.
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • DarinDarin Posts: 7,023 ✭✭✭✭✭


    << <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.
  • SpoolySpooly Posts: 2,108 ✭✭✭
    Congrats on the $31,000 profit!
    Si vis pacem, para bellum

    In God We Trust.... all others pay in Gold and Silver!
  • SlangNRoxSlangNRox Posts: 774 ✭✭


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




    Congrats on the $22,000 profit (minus state taxes)
  • Kd5ddoKd5ddo Posts: 208 ✭
    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...?
    Remember that the market can stay irrational longer than you can stay solvent.

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  • derrybderryb Posts: 36,792 ✭✭✭✭✭


    << <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.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • rickoricko Posts: 98,724 ✭✭✭✭✭
    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
  • Kd5ddoKd5ddo Posts: 208 ✭
    Jesus. What is this world coming to!!! image

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

    Button pockets don't help... I've tried...
    Remember that the market can stay irrational longer than you can stay solvent.

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