How can i buy gold coins tax free?

You can buy duty-free gold and silver on Bullion Exchanges online if you place an order in Alaska, Delaware, New Hampshire, Montana and Oregon. Sales tax will NOT be charged for items in gold, silver, platinum or palladium bullion, as they are exempt from sales tax when shipped to an Alabama address. The State of Alabama requires a simplified flat-rate use tax of 8% on some products sold by BGASC and delivered to an address in Alabama. These taxes must be collected on copper products, certain bullion items are less than.

All other products sold by BGASC are exempt from these taxes. The Internal Revenue Service (IRS) considers physical holdings of precious metals such as gold, silver, platinum, palladium and titanium to be capital assets specifically classified as collectibles. Holdings in these metals, regardless of their form, such as bullion coins, bullion coins, rare coins or bullion coins, are subject to capital gains tax. Capital gains tax is only due after the sale of such holdings and if the holdings were held for more than one year.

This is the case not only for gold coins and bars, but also for most ETFs (exchange-traded funds) that are taxed at 28%. Many investors, including financial advisors, have trouble owning these investments. They incorrectly assume that because the gold ETF is listed as a stock, it will also be taxed as a stock, which is subject to the long-term capital gains rate of 15% or 20%. Investors often perceive the high costs of owning gold as dealer margins and physical gold storage fees, or management fees and trading costs for gold funds.

In reality, taxes can represent a significant cost in owning gold and other precious metals. Fortunately, there is a relatively easy way to minimize the tax consequences of owning gold and other precious metals. Individual investors, Sprott's physical bullion trusts may offer more favorable tax treatment than comparable ETFs. Because trusts are domiciled in Canada and classified as Passive Foreign Investment Companies (PFICs), U.S.

In the US, they are eligible for standard long-term capital gains rates on the sale or redemption of their shares. Again, these rates are 15% or 20%, depending on revenue, for units held for more than one year at the time of sale. While no investor likes filling out additional tax forms, the tax savings of owning gold through one of Sprott's physical bullion trusts and holding the annual elections can be worthwhile. To learn more about Sprott Physical Bullion Trusts, ask your financial advisor or Sprott representative for more information.

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Celeste Provent
Celeste Provent

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