Privacy Facts on Selling Gold & Silver - IRS 1099 Form
One note before we begin, we are simply commenting on aspects of privacy, not an investor's responsibility to pay capital gains tax on any profits made from the purchase and sale of investment grade bullion products. For tax questions, please seek professional tax consul. Now onward to privacy:
Now that the White House has repealed the proposed $600 or more 1099 addendum to the Affordable Healthcare Act, it might behoove us to revisit the facts on the current IRS 1099 B form requirements for gold and silver.
IRS 1099 B Form or Privacy
We know privacy is very important to physical silver and gold investors and confidentiality is one of the values we covet along with our customers.
For some bullion investors, ensuring themselves a private sale is their most important objective and we understand the myriad of reasons as to why this is so.
That being said, we must always adhere to the laws of our land.
The question we are always asked is ... Are my transactions private? When I sell my gold bullion or silver bullion, is it a private transaction, or is it reported to the IRS?
First, when a customer buys from our dealership, the transaction is private. There are no forms we are required to fill out when you buy.
Secondly, when an investor sells their gold bullion or silver bullion to a dealer, some of these trades are private, some are not. Depending upon what you are selling will depend upon whether the powers that be require us as a dealer to fill out something called an IRS 1099 B Form.
When you sell your bullion back to a dealer, the pertinent questions are:
Remember, this is for private investor sales (your sale) of gold and or silver bullion to dealers.
Private silver bullion, 1099 Form exempt regarding any quantity of the following items:
Reported silver bullion, 1099 Form required, .999 fine silver bars/rounds sold in quantities:
1000 oz or more per transaction (100 oz bars, 10 oz bars, 1 oz bars, 1 oz rounds)
Private gold bullion, 1099 Form exempt regarding any quantity for the following items:
Reported gold bullion, 1099 Form required, foreign coins sold in quantities:
Reported gold bullion, 1099 Form required, fine gold bars sold in quantities:
One kilo in total (32.15 troy oz ) or more per transaction
Know Your Facts
These are the IRS 1099 B Form reporting requirements as they stand May 2011.
In the meantime, if privacy is critical to you as a bullion investor, you will want to keep in mind the current dealer reporting requirements and stay tuned to GoldSilver for any future news or proposed changes to the current laws as they stand today.
Screenshot of the 2011 IRS 1099 B Form:
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