Author Topic: Discussion of Gold and All Items Pertaining to It  (Read 2069 times)

JoeP

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Re: Discussion of Gold and All Items Pertaining to It
« Reply #8 on: April 24, 2014, 08:53:49 pm »
GO, it is my understanding that PM purchases of less than $10K are not reported to the Feds.  Is this accurate?  Let me know if you're getting tired of answering my rookie questions.   ;D
Think sales only are reported not purchases , but that Patriot act and constant new legislation has more garbage in it than can be kept up with.

Different states have different rules to on reporting. You are usually better off making small purchases of gold on  a regular basis than jumping in at one price.  Dollar cost averaging and staying under reportable limits.

Keep the questions coming JoeP, that's what this forum is about. Taxes are not an area I can offer much advice in however. You can also purchase certain US Gold coins in an IRA.
I don't know about gold specifically, but the magic number for the IRS generally is $600 in a year; if I were to sell gold to a single dealer over that amount, I would expect it to be reported on a 1099 form.

The $10,000 limit is against money-laundering and is generally per-transaction; however, multiple transactions used to get around that limit also raise a red flag.

On the other hand, I have heard that some states do not charge sales tax if precious metal transactions are over a certain amount, like $1500.

In all these cases, you should do more research for your own particular situation.  Circular 230 disclaimer: you should not rely on this general advice to avoid tax penalties.

Thanks JD.

  Very good info.  It's possible the reason I grabbed the 10K figure out of the sky is because I was involved in a software solution that had/has "Anti-Money Laundering" as the name of the product. 
« Last Edit: April 24, 2014, 09:03:01 pm by JoeP »