When it is necessary to report a purchase of gold, the dealer will be the one to report it. Form 8300 requires information about the gold purchaser, including name, social security number, address, and license number. If part of the form is left blank, the dealer must still send the form to the IRS. As explained in the “Reportable Purchases” section, purchases of precious metals are not declared unless the cash reporting thresholds are exceeded.
Investors who want to avoid reportable sales should buy American Eagles. Bullion dealers are not required to report any bullion purchase transaction that complies with the regulations to any government agency. The government does not require you to report the purchase of gold and silver. Telephone sellers are quick to claim that old American gold coins (or whatever they're promoting that day) have greater upward potential, citing several factors.
In addition, on December 31, 1974, with Executive Order 11825, President Gerald Ford repealed the Executive Order that Roosevelt used to call gold in 1933.First, if you receive the metals as a gift, the cost basis is equal to the market value of the metals on the date the donor purchased them. Reportable sales (again, customer sales to dealers) apply to 1-ounce Gold Maple Leafs, 1-ounce Krugerrands, and 1-ounce Mexican ounce in quantities of twenty-five or more in a single transaction. Americans once walked down the street with the clink of gold and silver in their pockets and didn't think about it. If you are a U.S.
citizen and believe that capital gains taxes on savings in gold and silver are not in line with constitutional law, you may also encourage your U.S. Congressman to pass this bill H.R. 6790, which could repeal those future taxes if passed. Gold coins that are promoted as “not confiscable” have a “special value” recognized by collectors of rare and unusual coins.
Physical gold or silver holds are subject to a capital gains tax equal to their marginal tax rate, up to a maximum of 28%. To prevent the government from finding out about their investments in precious metals, many investors are happy to know that their purchases will not be declared and they will end up buying overvalued currencies. As with other types of businesses, the vast majority of precious metals transactions take place without any reporting requirements. The final step in determining if a sale of precious metals should be declared is to evaluate the quantity being sold.
Among the currencies that are subject to notification are 1-ounce maple leaf-shaped gold coins, 1-ounce gold Kruggerand coins, 1-ounce Mexican ounce gold coins, and any U.S. coin made up of 90% silver.