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When you sell gold to us, we will explain every step of the process to help you understand how selling gold works. With your XRF Precious metals Analyzer, we can test your gold to know exactly what purity your gold contains. This helps us assess your gold to give you the most when you sell.
You may not know that when you invest in gold, you must pay taxes on any physical gold assets you own. This can be slightly confusing since taxes on gold investments are slightly different than other assets. Taxes may vary depending on certain factors such as your state, city, county, and the amount of gold you’ve purchased and sold.
How Gold is Classified
Gold is classified as a collectible, making it a little bit different than other investments. Gold is classified as a collectible because of its rarity and value. Silver, palladium, and titanium are classified this way as well. This classification does not change depending on what form your metals are in. This means that bullion, bars, and coins are all still considered collectibles by the IRS.
Capital Gain Taxes on Gold Investments
When you sell gold and make a profit, it’s taxed as a capital gain. Capital gains on gold change depending on how long you’ve held your gold. Gains held less than a year are taxed the same as ordinary income. Gains held more than a year are taxed as ordinary income; however, after one year they are maxed out at a 28% tax rate. Since the IRS doesn’t treat gold as a special asset, this means that there are no specific rules when it comes to capital gains taxes. You’ll have to plan accordingly with your tax or financial advisor if you want to minimize your tax bill on the gold you’ve traded.
three large gold bars on many dollar bills
Taxes on Self-Directed IRAs (SDIRAs)
If you’ve used gold as an asset on your self-directed IRA, or SDIRA, you may be wondering how taxes work on that. Since IRAs are not subject to federal taxes, the taxes collected on your SDIRA will be slightly different than your normal taxes. Also, if you withdraw money from your SDIRA early, you’ll be subject to taxes and possibly even withdrawal penalties. When you start an SDIRA, you can choose whether your contributions will be made before or after tax. For example, if you’ve opened a Roth SDIRA, your contributions are made with after-tax dollars and therefore, withdrawn tax-free.
Reporting Requirements
Tax liabilities are not due when the initial sale of metals is made. Instead, metal investments are reported on Form 1040 on your tax return. You may also need to fill out Form 1099-B depending on the type of metal that you are selling because it may be considered income. Examples of items that need to be reported are:
- $1,000 face value of U.S. 90% silver dimes
- Quarter or half dollars
- 25 or more 1oz Gold Maple Leaf, Krugerrand, or Mexican Onza coins
- Gold or silver bars that are 1kg or 1,000 troy ounces
Tax bills for these sales are due at the time of your regular income tax bill.
A Self-Directed IRA (SDIRA), sometimes called a Gold IRA, allows you to use alternative assets for your retirement funds such as precious metals like gold, silver, and platinum. Using an SDIRA over a traditional IRA has many benefits. And although in many ways, they work similarly to a regular IRA, there are a few key differences you should be aware of. Always talk to your financial advisor first to see if an SDIRA is a good option for your retirement plan.
How They Work
A gold SDIRA requires that you actually purchase the physical assets, and then store it as part of the investment. Your custodian will manage your account and keep track of all of the assets that you include in your account. The professionals at California Gold and Silver will facilitate the purchase of these assets for your account.
Why You Should Choose an SDIRA
Precious metals, especially gold, are a great option to choose as an asset for your SDIRA. There are many benefits you gain from using an SDIRA over a traditional IRA including:
- You can choose to use pretax or after-tax dollars through a special custodian or through your broker.
- The IRS allows you to purchase gold in any approved physical forms to use as an investment.
- These accounts are separate from any regular IRAs you have set up.
- Gold and other precious metals act as a hedge against inflation.
- Gold and other precious metals hedge your retirement savings against market crashes.
These are just a few of the reasons choosing an SDIRA is a great way to invest in your future, and why using gold for your SDIRA is a great choice for your asset.
What Are the Risks Involved
There are some risks involved when it comes to choosing an SDIRA and investing in precious metals in general. Some things to keep in mind are:
- The price of precious metals is constantly fluctuating.
- SDIRAs often carry higher fees than regular IRAs because they require you to purchase and store physical assets.
- The IRA puts a limit on annual contributions you can make to your SDIRA.
Keep these risks in mind when you are deciding if an SDIRA is right for you. You should always talk to your financial advisor or CPA before making any decisions about your finances.
Get Started with an SDIRA
You can easily get started with your SDIRA at California Gold and Silver Exchange. Or come into our office and fill out a form to start investing in your future. Be sure to talk to your financial advisor before making any monetary decisions.
Sterling silver flatware can be a great way to make some extra cash. However, identifying your flatware to make sure that it’s truly sterling silver can be a little more difficult. Sterling silver is 92.5% silver, which is part of the reason it is so valuable. It can also be refined while keeping its original value. Sterling silver flatware is one item that keeps both its resale value and appeal, which makes it a sought-after item by many collectors and silver traders. In this article, we’ll teach you how to identify your flatware so you can know if what you have is truly sterling silver. Always talk to your CPA or Financial Advisor before making investments.
Look for Indicator Marks
The first thing you can do is check for indicator marks or stamps on your flatware. Usually, sterling silver will have a mark that indicates it as sterling silver. It may also have a British Hallmark that indicates what kind of flatware you have. Another indication that you have true sterling silver is that the flatware pieces are usually darker in color and more lightweight than normal silverware.
Check for Numbers
Another way you can identify if your flatware is sterling silver is by looking for a .925 stamp. Real sterling silver is marked with “.925” because it is 92.5% silver. This is one of the easiest ways to tell if what you have is real sterling silver or not. If your piece is not full sterling silver, it’s likely that you have EPNS (Electroplated Nickel Silver), Nickel Silver, German Silver, Roger’s 1847 Silver, International Silver, or another type of plated silver.
Identify Plated Items
Plated items are items that only have a coating of sterling silver, and are not solid silver. This makes them less valuable than solid sterling silver. If your items are plated, they will often have the words single-plated, double-plated, triple-plated, or quadruple-plated on them. While these items aren’t as valuable as their solid counterparts, they are still extremely durable.
Figure Out if You Have a Set or Individual Pieces
You’ll want to know if you have an entire set of sterling silver flatware or just odd and end pieces. Full sets are more valuable than individual pieces, and therefore, more likely to be on a collector’s radar. Check to make sure all your pieces have the same markings on them. If they don’t, it’s possible that you have some pieces that aren’t a part of the set.
Ready to Sell Your Silver? Contact Us!
California Gold and Silver is a highly-rated gold and silver trader in Upland, CA. If you have sterling silver flatware that you’d like to get appraised, contact us to set up an appointment!
