Gold was first discovered in Alaska in the summer of 1896. The discovery sparked a mass migration to the Yukon Territory in hopes of striking it rich. To this day, Alaskans invest in gold as it is a relatively stable and long-term growth asset. Many also choose to invest in silver, palladium, and platinum as part of a diversified investment strategy.
First, make sure you’re familiar with federal and state laws. Then, once you’re ready to buy precious metals online, visit a gold dealer’s website and browse the available investment options. These can include gold coins, bars, and IRAs.
When you sell gold and other precious metals, you will be subject to capital gains tax by the IRS. This is because the IRS views investments in precious metals as capital assets that fall under the collectibles category. Therefore, capital gains tax is due if the precious metals are sold after being kept for at least a year.
The capital gains tax is equal to the profit you make from the transaction. The capital gains tax rates are 0%, 15%, or 20%, depending on your income, and can reach a maximum of 28%. The following is a breakdown of the capital gains tax rates for 2023:
|Single||Up to $44,625||$44,626 to $492,300||Over $492,301|
|Head of household||Up to $59,750||$59,751 to $523,050||Over $523,051|
|Married filing jointly||Up to $89,250||$89,251 to $553,850||Over $553,851|
|Married filing separately||Up to $44,625||$44.626 to $276,900||Over $276,901|
When looking to open a gold IRA, the IRS has strict regulations regarding the types of precious metals that are eligible. Therefore, your assets need to meet the following criteria:
When selling gold or other precious metals in Alaska, investors are required to report the profits to the IRS. To report the income, sellers must complete Schedule D of Form 1040 on their annual tax return.
In addition, depending on the type of asset that is sold, investors might also be required to complete Form 1099-B by the IRS. For example, form 1099-B is needed when selling:
According to Alaska’s Department of Revenue, “the State of Alaska currently does not have a sales and use tax; however, some local jurisdictions impose local sales taxes.” This means that all precious metal purchases are exempt from taxation on the state level.
However, each county or city can set its own sales tax amount. For instance, the city of Homer has the highest sales tax in Alaska, reaching 7.85%. Additionally, the North Slope, Skagway, and Matanuska-Susitna Boroughs share a sales tax rate of 3%.
Gold coins typically weigh one to two ounces. However, you may also find lower denominations like half-ounce, quarter-ounce, and one-tenth-ounce coins at some dealers. Gold coins also come in varying qualities. Older minted coins contain 90% to 92% gold, whereas newer coins contain 99.9% gold. Some gold dealers also sell alloyed gold coins, which comprise 91.7% gold. The gold coin price is often based on the size and gold content. However, some coins can cost more than the gold spot price based on rarity, demand, and design elements.
There are four types of gold coins: