Reportable Bullion Transactions

Reporting Bullion Transactions with Gold Financial Group

At Gold Financial Group, we believe that informed investors make the best financial decisions. If you buy or sell precious metals, it’s important to understand the IRS rules for reporting bullion transactions, including tax implications, required IRS forms, and capital gains. Knowing the details ensures compliance and helps you avoid costly penalties.

 

Tax Implications of Bullion Transactions

Precious metals can provide stability, hedge against inflation, and generate profits when sold. But like any investment, these profits may be taxable. The IRS requires reporting in two main situations:

  1. When you sell specific quantities of certain bullion products.

  2. When you make or receive cash payments of $10,000 or more.

Failure to report properly can result in fines, penalties, or even criminal charges. At Gold Financial Group, we guide our clients through these rules so they understand exactly when reporting is required.

 

IRS Form 1099-B: Reporting Precious Metal Sales

The 1099-B form is used by dealers to report profits from non-corporate sellers of certain bullion. This form helps the IRS track sales and prevent tax evasion.

Reportable thresholds vary by metal type and purity:

  • Gold Bars & Rounds: .995 purity or higher, 1 kilo (32.15 troy oz) or more.

  • Silver Bars & Rounds: .999 purity or higher, 1,000 troy oz or more.

  • Platinum: .9995 purity or higher, 25 troy oz or more.

  • Palladium: .9995 purity or higher, 100 troy oz or more.

Certain coins also trigger reporting:

  • 1 oz Gold Maple Leaf

  • 1 oz Gold Krugerrand

  • 1 oz Gold Mexican Onza

  • U.S. 90% silver coins (over $1,000 face value)

Exemptions: Gold and Silver American Eagles, fractional coins, and foreign coins not on the IRS list are generally not reportable.

 

IRS Form 8300: Reporting Cash Payments

Federal law requires bullion dealers to file Form 8300 when a cash payment of $10,000 or more is made in one transaction (or multiple related transactions within 24 hours).

For this rule, “cash” includes:

  • U.S. or foreign currency

  • Traveler’s checks

  • Cashier’s checks

  • Money orders

  • Bank drafts

Not considered cash: personal checks, bank wires, credit/debit cards, ACH, or PayPal.

Capital Gains Tax on Bullion Sales

Profits made from selling bullion are subject to capital gains tax. This applies only when you sell your metals for more than you paid. If you hold metals without selling, no taxable event occurs.

For example:

  • If you bought gold at $1,500/oz and sold at $2,000/oz, the $500 profit per ounce is subject to capital gains tax.

  • If you sell at a loss, no capital gains tax is due.

Because state tax laws vary, Gold Financial Group always recommends consulting a licensed tax professional for tailored advice.

Frequently Asked Questions

Does Gold Financial Group share my information?
No. We only use your information in accordance with our Privacy Policy and Terms of Service.

What bullion products require a 1099-B?
Sales meeting IRS quantity thresholds for bars, rounds, and specific coins like the Gold Maple Leaf or 90% U.S. silver coins.

Which products are exempt?
Fractional gold coins, Gold and Silver American Eagles, and many foreign coins not listed by the IRS.

What is Form 8300 and when is it required?
Form 8300 reports cash transactions of $10,000 or more. It must be filed by dealers for qualifying payments.

Do I pay taxes every time I buy or sell bullion?
Not always. Taxes apply when you realize a profit from a sale (capital gains). No taxable event occurs when simply holding metals.

Gold Financial Group: Trusted Guidance on Reporting Bullion Transactions

As a trusted precious metals dealer, Gold Financial Group complies with all IRS reporting requirements. We are committed to helping our clients understand the laws surrounding reporting bullion transactions, so they can buy and sell with confidence.

If you’re unsure about your specific tax situation, we encourage you to consult with a qualified tax professional.