Tax Aware
Metals Strategy

The IRS treats bullion and coins as collectibles. Held for more than one year, gains are taxed at a maximum federal rate of 28%, rather than the 20% top rate that applies to most stocks. Held for one year or less, gains are taxed as ordinary income. Some higher earners also owe the 3.8% net investment income tax. Your CPA can confirm which rates apply to you.

Keep the purchase date, the total price paid including premiums and fees, the product and weight, and serial numbers for bars that carry them. Keep the same detail for every sale, transfer, or gift. The desk records each bar and coin we place by serial number, date, and price, so your holdings statements give your CPA what they need. For metal moving from a home safe, gather the original receipts first.

Yes. The line is one year. Metal held for one year or less is taxed at your ordinary income rate. Held for more than one year, it moves to the collectibles rate of up to 28%. We track the holding period of every bar and coin, so you can see which lots cross the one-year line and when.

When the law requires it. Dealers file Form 1099-B only for certain products sold in quantities that match a regulated futures contract, such as larger lots of gold bars or certain one-ounce gold coins. Cash payments over $10,000 are reported on Form 8300. Whether or not a form is filed, you are responsible for reporting any gain on your return.

According to the IRS, precious metals you own directly are not a specified foreign financial asset for Form 8938. FBAR reporting turns on whether the storage arrangement works like a financial account, which depends on how the custodian holds and can move your metal. Ask your CPA to review your custody agreement before you store abroad, and the desk will share the documents they need.

Inherited metal generally takes a new basis equal to its fair market value on the date of death, so a sale soon after often produces little or no gain. Gifts made during your lifetime work differently: the recipient usually keeps your original basis. Titling and timing both matter, so plan transfers with your attorney and CPA.