Q: My mother-in-law wants to abbey some gold coins, specifically American Gold Eagles and Canadian Gold Maple Leafs, into CDs and/or cash sell funds. How does one cloister gold coins into fiscal in decree to do this? What are the IRS reporting requirements?
Selling Gold Coins
A: In an doubtful economy, investing in gold coins becomes more haunting Given that numismatic coins are often more valuable than bullion alone, this heightened profit is no nonplus The American Eagle, for example, is the most natural investment gold coin in the United States Buyers and sellers like it because they notice exactly what is at stake: One unique side of this coin, which uses the 22 karat typical established for gold circulating coinage other than 350 years ago, is that its onus and purity are guaranteed by the U.S Government
From high-end jewelers to pawnshops, you consign keep infrequently trials finding businesses interested in selling or buying your gold coins However, to maximize your sake and grant you some calm of temper you want to do a scarcely research. Here are a few tips:
- Locate a reputable dealer In codicil to the Better Business Bureau and supplementary resources, the US Mints posses website (www.usmintgov) lists dealers by state
- Call around, as prices to buy and vend can vary greatly. In addition, prices revise continually throughout the day, so try to achieve a point commitment for how long a instance bequeath be legal
- Be very cautious of TV, Internet and get money hasty ads
As for taxes, Uncle Sam takes a flavour out of almost every asset sold and coins are no expunction In fact, collectibles are thesis to one of the leading rates of governmental taxation on investment property Capital good from a collectible sale is taxed at 28 percent This is significantly higher than for stocks, securities and many fresh investments, which enjoy a 15 percent cash gains tariff rate (5 percent for taxpayers in the 10 percent to 15 percent tribute brackets).
There are two fresh customs issues to consider First, relates to the valuation of gold coins When coins own numismatic worth exceeding their outside denomination, the cipher realized is the numismatic value of the coins, not the outside value. Second, if you deficiency to invest in the cost of gold fairly than the coins collectability, consider investing in gold strictly as a precious metal, such as through gold-mining stocks That interest, and the wellbeing realized by selling it, is entitled to flawless capital profit treatment