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STRATEGIC TAX SERVICES

Gold and Silver Coins and Bullion

1031 Exchange Services - Precious Metals Exchange

Gold and Silver Coins and Bullion

  1. What sales are reported to the IRS on Form 1099B?
    1. Effective January 2012, all sales of precious metal of any kind in excess of $600.00 will be reported on Form 1099B.
    2. Before January 2012, any sale of precious metal, including gold, silver, platinum or palladium, in any form which is approved for regulated futures contract by the Commodity Futures Trading Commission (CFTC) equal to the minimum required quantity to satisfy the CFTC requirements. All sales within 24 hours are aggregated.
    3. Examples of Broker reporting Requirements
      1. 25 or more 1 ounce gold South African Krugerrand coins, 1 ounce gold Canadian maple Leaf coins, and/or 1 ounce Mexican gold coins.
      2. 1 kilo gold bars,1 and/or 100 ounce gold bars,2
      3. 1,000 oz. silver bars,
      4. $1,000.00 face value of pre 1965 US 90% silver coin,
      5. 50 oz. of platinum, or
      6. 100 oz. of palladium.
  2. What sales are not reported to the IRS on Form 1099B?
    1. A sale of precious metal, including gold, silver, platinum or palladium, in any form which is not approved for regulated futures contract by the Commodity Futures Trading Commission (CFTC) or
    2. A sale of precious metal, including gold, silver, platinum or palladium, in any form which is approved for regulated futures contract by the Commodity Futures Trading Commission (CFTC) but does not meet the minimum required quantity to satisfy the CFTC requirements.
    3. Example:
      1. The sale of one gold coin is not reportable if the CFTC contract minimum requires 25 gold coins.
      2. 1 ounce gold American Eagle coins
      3. Silver American Eagle coins
      4. 100 ounce silver bars
      5. Fractional ounce gold coins
  3. What sales are reportable on your federal income tax return for the year of sale? Whether reported on Form 1099B, all sales of precious metal, in all forms, are reportable, whether or not handled as a tax deferred like-kind exchange, on your federal income tax return for the year of sale. Sales not reported will result in civil and/or criminal tax penalties, and possible imprisonment for failure to report sales of precious metals.

 
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