As a financial planner, Jill recommends that her clients purchase physical gold and silver metals. Sadly, she found they sometimes overpaid as well as purchased unsuitable coins and bullion for their needs. With over 20 years in financial planning background, Jill spent years of research regarding precious metals.
However not all gold and silver coins and bullion sold are reported to the IRS or taxed the same. Did you know that if you sell certain coins and bars over certain weights in one year you are subject to 1099-B reporting to the IRS? Isn’t this information important? However, many sources of precious metals do not provide adequate information for investors.
Please be aware that 1099-B reporting is a separate issue from taxes owed. We refer to the Bullion Reporting Rules Industry Council for Tangible Assets by the Industry Council for Tangible Assets (ICTA) concerning a 1099-B reporting. Why buy precious metals that, when sold, require a 1099-B report sent directly to the IRS? While we strongly advise paying taxes owed, this is a separate issue. Instead, we suggest that one benefit of owning these metals includes independence of government intrusion.
Please be advised, record keeping of both the purchase and sell of precious metals becomes critical to determine tax consequences. We do not act as tax advisors. As with any investment, seek professional tax advice.
For additional information about Eagle European Capital, LLC, please visit the About Us tab.