How Much Gold Can I Sell Without Reporting?

Selling gold often brings questions about reporting requirements to tax authorities. It is important to understand that distinct reporting obligations exist for both the purchaser and the seller. A gold sale carries tax implications for the seller, regardless of whether the buyer issues a formal report. Understanding this distinction is important for individuals.

Reporting Requirements for Gold Purchasers

When you sell gold, certain purchasers, typically businesses or brokers, may be required by the Internal Revenue Service (IRS) to report the transaction. This reporting is generally done on IRS Form 1099-B, “Proceeds From Broker and Barter Exchange Transactions,” which informs the IRS of sale proceeds and helps ensure tax compliance. Private individuals buying gold from you are generally not subject to these reporting requirements.

Specific types and quantities of gold transactions trigger a Form 1099-B reporting obligation for the buyer. For gold bullion in bar or round form, the transaction is reportable if each piece has a fineness of at least .995 and the total quantity sold is 1 kilo (approximately 32.15 troy ounces) or more. Certain gold coins also have specific thresholds, such as 1-ounce Gold Krugerrands, 1-ounce Gold Maple Leafs, and 1-ounce Gold Mexican Onzas, which are reportable if 25 or more coins are sold in a single transaction.

Several common gold products are exempt from this Form 1099-B reporting requirement, regardless of quantity sold. These exemptions include:
U.S. gold coins like the American Gold Eagle and the Gold Buffalo.
Fractional ounce gold coins.
Gold jewelry.
Scrap gold.
Foreign gold coins not specifically listed by the IRS.

Your Personal Tax Responsibilities

Regardless of whether a buyer issues a Form 1099-B, you, as the seller of gold, have an independent obligation to report any gains or losses on your personal income tax return. A taxable event occurs when you sell gold for more than its original purchase price. This profit is subject to capital gains tax.

To determine your gain or loss, establish your “cost basis” in the gold. The cost basis includes the original purchase price plus any associated acquisition costs, such as commissions or fees. If the selling price exceeds your cost basis, you have a capital gain; if it is less, you have a capital loss.

The Internal Revenue Service (IRS) classifies physical gold, including bullion and coins, as a “collectible” for tax purposes. This classification affects the tax rate applied to long-term capital gains. If you held the gold for one year or less before selling, any gain is considered a short-term capital gain and is taxed at your ordinary income tax rate. If you held the gold for more than one year, it is considered a long-term capital gain on a collectible and is subject to a maximum tax rate of 28 percent.

You report these gains or losses on Schedule D (Capital Gains and Losses) of Form 1040. You may also need to use Form 8949, “Sales and Other Dispositions of Capital Assets,” to detail each individual gold transaction before transferring the totals to Schedule D. Capital losses can generally be used to offset capital gains, and in some cases, a limited amount of ordinary income. The absence of a Form 1099-B does not remove your responsibility to accurately report these transactions and their tax implications to the IRS.

Record Keeping for Gold Transactions

Maintaining detailed records for all your gold purchases and sales is important for accurate tax reporting. These records are especially useful when a Form 1099-B is not issued by the buyer, as you are solely responsible for calculating your cost basis and any taxable gains or losses. Proper documentation supports the information reported on your tax return and is important if your tax filings are ever reviewed by the IRS.

Records to keep include purchase receipts, invoices, and transaction confirmations. These documents should show the date of acquisition, purchase price, and any associated fees or commissions. For sales, retain records detailing the selling price, date of sale, and any selling fees. These records help determine your cost basis and calculate the capital gain or loss.

It is recommended to retain records for tax purposes for at least three years from the date you file your tax return. However, if you substantially underreport your income, the IRS may have up to six years to assess additional tax. Keeping thorough records provides a clear audit trail and helps demonstrate tax compliance.