Florida, or the Sunshine State, is a top destination for beach tourism, golfing, and amusement parks. And while Florida hasn’t historically been a destination for gold mining, believe it or not, gold investing is popular in the state for growing long-term wealth.
Buying precious metals has always been a stable way of protecting against market collapses and inflation. If you want to invest in gold and silver, Florida has its own rules and regulations. It’s important to know these laws and consult with a professional before making investment decisions.
On the federal level, individuals who sell gold and other precious metals must pay capital gains tax. This tax is applied to assets that have appreciated during the time they’ve been held. It is applied to assets such as real estate, stocks, bonds, and precious metal collections.
The capital gains tax rate depends on the income you make from the transaction and grows as the transaction value increases. Sellers typically have to pay 0%, 15%, or 20% of the transaction value, but the tax rate cannot exceed 28% of the profit. The tax is included in the seller’s annual tax return only after the sale has been finalized. Below is a breakdown of rates based on the individual’s filing status:
|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|
For a while, the IRS only permitted holding American Eagle gold or silver coins in IRAs. The Taxpayer Relief Act of 1997 added a list of additional precious metal products. Today, the IRS has a list of approved precious metal products that you can include in your IRAs. The coins should match the following requirements to be approved by the IRS:
That said, these are the types of precious metal products currently allowed by the IRS:
Some additional paperwork is required when you sell precious metal bullion and coins. The IRS requires all citizens who sell precious metal products to complete Schedule D of Form 1040 on their annual tax return.
For the following type of transactions, you should report to the IRS using Form 1099-B:
In Florida, a 6% sales tax applies to gold and other precious metal transactions only if the total sale amount is below $500. Some local municipalities can also impose an additional 1% to 2% on the sales tax. For single transactions that are more than $500, the sales tax is not applied.
Gold and other precious metals that were used as legal tender in the U.S. are exempt from the sales tax. Coins produced by the U.S. Mint are usually considered to be legal tender. Coins that are legal tender in another country but are sold for their face value are also exempt from sales tax.
Different factors influence the price of gold coins. Gold costs usually depend on its fineness, condition, size, rarity, dealer, and demand. Typically, the larger the size and the higher the gold content of a coin or bar, the more it costs.Gold is considered one of the most stable investments. This is because gold prices have historically been rising, which makes it an attractive investment option for the long term.
Gold coins usually weigh one to two ounces, but you can also find coins that weigh half or a quarter of an ounce. Older coins may contain 90% to 92% gold, while newer coins typically contain 99.9% gold. It is also common for some gold dealers to sell alloyed gold coins that contain 91.7% gold, with the remainder made up of silver or copper.
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 you can purchase and sell: