Bullion restrictions

metalsaver1970

Hello to everyone here. Is there any restrictions on selling your own accumulated precious metals? I know it's a broad question. I want to make sure I'm compliant before selling through online avenues. Any info would be helpful.

TomB

If you own the bullion, you may sell the bullion.

derryb

IRS expects you to pay capital gains on any profit from an investment. There are some additional reporting requirements for a sale of a large amount. Maybe someone will chime in with the dollar amounts and the requirements.

metalsaver1970

@derryb That's more along the lines of my question. I didn't accumulate for the sole purpose of a profit. I did so in case of an economic downshift and to collect things I liked. So if I bought "a" for $500 and sell now for $700,I'd have to report the $200 "gain"?

derryb

@metalsaver1970 said:
@derryb That's more along the lines of my question. I didn't accumulate for the sole purpose of a profit. I did so in case of an economic downshift and to collect things I liked. So if I bought "a" for $500 and sell now for $700,I'd have to report the $200 "gain"?

IRS says you do. you get to subtract from your profit any buying or selling related expenses including shipping and selling fees. If you sell on-line remember there is an electronic trail of your transaction. Read up on capital gains taxes at the IRS website, not complicated, you can file the form yourself with your annual tax return.

metalsaver1970

@derryb Thank you for the help. I guess you can't argue "collector." Does that only apply to bullion or are ASE and AGE included? I can't see them tracking junk silver coinage.

derryb

@metalsaver1970 said:
@derryb Thank you for the help. I guess you can't argue "collector." Does that only apply to bullion or are ASE and AGE included? I can't see them tracking junk silver coinage.

IRS taxes investment gains. Any thing bought and sold for a profit can be considered an investment by the IRS. Also note that they specifically designate precious metals as "collectibles," taxing their gains at a higher rate. Read up on capital gains taxes. You might also search the US coin forum (search feature) for discussion on capital gains. Lotta discussion on this over the years.

metalsaver1970

@derryb Thank you for the advice.

BAJJERFAN

jmbullion.com/reportable-bullion-transactions-infographic/

The above link contains some useful info regarding bullion reporting.

TwoSides2aCoin

This is America. Everything you do is prosecutable. LOL

1630Boston

A little off topic, but if you leave your collection to your heirs......is the new basis the value at time of inheritance ??
Just wondering if that is the case as it is with stocks.

metalsaver1970

@BAJJERFAN That is some great information. Thank you for the help.

BAJJERFAN

@metalsaver1970 said:
@BAJJERFAN That is some great information. Thank you for the help.

YW!

derryb

@1630Boston said:
A little off topic, but if you leave your collection to your heirs......is the new basis the value at time of inheritance ??
Just wondering if that is the case as it is with stocks.

Yes, a new basis (initial cost) is set at time of inheritance and is based on current market value. For this reason it is sometimes better to leave an asset that has gained considerable value to your heirs rather than sell it before your death and having to pay gains based on it's original, much lower purchase price. This comes in handy especially with rental property. The heir is then free to sell the inherited item with a lower tax bill because of a lower profit based on a new, higher basis (cost).

Calculating Capital Gains Tax on the Sale of a Collectible

1630Boston

@derryb thanks for the info, I thought that would be the case.

metalsaver1970

@1630Boston I considered your scenario when deciding to cash out. I don't think they have to pay anything if you liquidate before your time comes and give them whatever cash. I also thought there was a one time tax free gift option, but maybe that's for spouses. You guys certainly have provided some very useful information.

1630Boston

@metalsaver1970
I know there are state and federal limits on gifts.
I think it is around $12,000 or so per person per year, so that is a consideration also.
But when you liquidate I think you are correct that **they **would have no tax liability but **you **would have capital gains taxes yourself I believe.

derryb

IRS taxes gains (profit) from the sale of an asset. If one were to give his asset or assets (valued below current gift exclusions) to someone then they would be considered a tax free gift and not subject to income tax. If the recipient then sells the asset, capital gains taxes would be owed by the seller on any gain. IRS currently allows an annual cumulative $14K tax free gift to an individual by another person. Parents, for example, can each give the tax free $14K limit to each child. live in FL where there is no state income tax and have no information on state gift tax laws.

1630Boston

Thanks again @derryb

metalsaver1970

I would rather pay it, than have them pay it later. I don't want to liquidate for that sole purpose. I'm ready to officially retire away to the middle of nowhere and enjoy life.
@derryb All of your information has been very helpful. Thank you.

1630Boston

If you hold onto it, if you are able, then no one will have to pay it, I believe.
@derryb