Buying gold and silver is one of the most private investments possible. Dealers do not share any information with the government when a customer buys gold or silver unless the customer uses more than $10,000 in cash. Typically, this would trigger a 8300, but since MGA only accepts wire transfers of this size, this is not an issue for our clients.
You see, it's private primarily because you have total control of them. You physically possess it, and you can use it for whatever you’d like without the government having any ability to track it.
Whatever you buy is between you and the dealer.
When you’re selling precious metals, it can get a little more complicated, which is why a reputable dealer is important. The dealer isn’t required to report anything unless the seller exceeds specific quantities of specific gold or silver items, in which case the dealer must file a 1099B with the IRS.
The 1099B forms are like other 1099 forms taxpayers commonly receive; the “B” means they have been issued by a business other than a financial entity. Any profit or gain from a sale is your responsibility to disclose to the IRS on your tax returns.
Precious metal dealers must file a 1099b form with the IRS if they acquire any of the following in a transaction:
• 1 or more, 1-kilo (32.15 troy ounces) gold bars. Or any combination where the total ounces equal 1-kilo
• 1 or more, 100-ounce gold bars
• 1 oz Gold Krugerrand's or 1 oz Gold Maples if the quantity is 25 or more
• Any size platinum bar(s) totaling 25 troy ounces or more
• Any size palladium bar(s) totaling 100 troy ounces or more
• Any size silver bar(s) totaling 1,000 troy ounces or more
• And any combination of 90 percent silver coins totaling $1,000 face value or more
It is worth noting that Gold and Silver American Eagle Coins are exempt from this list, even if their value exceeds that mentioned above.
If you have a transaction that triggers a 1099b, you can rest assured that My Gold Advisor keeps track of it on your account and issues you the form prior to the deadline, which is typically in mid-February.
