Does the Government Track Your Gold Purchases?

 

The short answer to this question is no, the federal government doesn’t actively track individual citizens’ gold holdings. The only exception is when large transactions occur involving significant amounts of gold paid for in cash, exceeding specific reporting thresholds for the dealer. Whether they’re looking to purchase gold coins or buy gold bars, San Diego precious metals collectors should read on to learn more about federal reporting requirements for gold.


No National Database for Gold

For electronic tracking of gold purchases, there needs to be a national database, but there’s no central database or electronic tracking system for gold purchases in the United States. You can often make gold purchases in smaller amounts without telling anyone you purchased the gold unless you sell it. However, some situations do require reporting to the IRS.

When Do You Have to Report Gold Purchases to the IRS?

According to the IRS, businesses are required to disclose any cash transaction exceeding $10,000 or two or more related transactions exceeding this amount. For certain transactions, the IRS requires a Form 1099 B or a Form 8300 to be filed. This applies to any type of physical gold.

The IRS also requires dealers to report sales of certain amounts or certain kinds of gold bullion. For instance, if you purchase 25 or more 1 oz Gold Maple Leafs, 1 oz Mexican Onzas, or 1 oz Krugerrands in a single transaction, you have to report this to the IRS, and the dealer has to report it as well. However, if you purchase gold coins with only small amounts of actual gold, these don’t need to be reported no matter how many you purchase.

You also have to report any gold you sell for more than what you paid for it. This is referred to as capital gains tax. Anything you “gained” is considered taxable income. If you have a loss on what you sell, you may be able to claim the losses as well and save money on your taxes.

Gold Coins Made before 1965

Gold coins made before 1965 are often worth more than the market value of similar coins made today. For instance, if you purchase a coin that fits into this category, it could be worth much more than today’s market value. In other words, go by the value of the coin based on the date it was made to ensure you’re reporting what you need to report. Otherwise, you may assume the coins are worth less than $10,000 when they really exceed this amount.

Complying with IRS Requirements

If you try to spread out your gold purchases in an effort to skirt IRS requirements, you may be accused of attempts at money laundering, even if this isn’t your intention. It’s better to be up-front about your gold purchases. If you have any doubts about whether you need to report your gold purchase(s), consult with a financial advisor specializing in precious metals. 

 

Whether they’re looking for expert advice on owning precious metals or they want to buy gold bullion, San Diego residents should work with trustworthy precious metal dealers who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to invest in precious metals, including gold, silver, platinum, and palladium. Give us a call today.

 

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.