If you have ever thought about selling your precious metals, one of the things you may have wondered is: how are these transactions reported?
IRS Form 1099-B, as applied to precious metals
When a client sells bullion to a precious metals broker, a Form 1099-B may be required depending on the type, fineness, and quantity of the bullion sold. If the bullion sold meets the requirements for reporting, the broker must complete and send to the IRS a 1099-B form detailing the transaction.
Broker Reportable Items List
Previous regulations required brokers to report transactions consisting of as little as one silver dime. However in 1992, The Industry Council for Tangible Assets (ICTA), a nonprofit association dedicated to the rare coin, currency, and precious metals industry, successfully completed negotiations with the IRS that “established reasonable reporting requirements on certain bullion-related products.” The result of these negotiations, as understood by ICTA, requires the sale of the following items in excess of the quantities listed below to be reported to the IRS via Form 1099-B:
*For bars, any hallmark regardless of whether that hallmark is accepted as “good delivery” on any of the commodity exchanges.
Important for you to know
If what you are selling does not fit the list above, the broker is not required to report the transaction. Please consult your tax advisor to find out your reporting responsibilities on other precious metal, bullion, or numismatic transactions. The information here is provided to educate and assist you and is not intended to give you tax advice in any shape or form.
While a stricter interpretation of the regulations is possible, ICTA believes the above guidelines to be those which fulfill the spirit of ICTA’s negotiations with the IRS. Though the information provided herein is based on ICTA’s discussions with the Internal Revenue Service, others may differ with ICTA’s interpretations of these regulations. ICTA strongly cautions that alternative interpretations may not fulfill the requirements.
First Capital Gold Risk Disclosure: Purchasing precious metals in the form of bullion, bars, coins, proof coins, or numismatic coins involves a degree of risk and variable premiums that should be carefully evaluated prior to investing any funds. First Capital Gold and its agents are not registered or licensed by any government agencies and are not financial advisers or tax advisers. Past performance is not a guarantee of future results. Gold and other precious metals are considered long-term investments meant to be held for 5 to 10 years or more. This publication is meant as a resource and not intended to offer any financial or tax advice.