One popular investment option that is growing in the U.S. is to buy precious metals to grow long-term wealth. Individuals chose to invest in silver, gold, platinum, and palladium as a way to diversify their portfolios.
Residents of Illinois find investing in precious metals like gold coins and bars a relatively stable form of investment. Throughout history, gold has served as a hedge against inflation, making gold a good investment that has preserved its value through economic downturns. However, before purchasing gold online in Illinois, make sure to familiarize yourself with federal and state laws.
If you’re ready to buy gold, visit a gold dealer’s website online to browse their products. Most dealers offer various assets to invest in, including gold, silver, platinum, and palladium coins and bars. In some cases, you may need to contact a representative to set up an account.
If you sell your gold investments after a year, you will be subject to federal capital gains tax. This is because gold investing is considered a capital asset by the IRS.
When selling your gold assets, the capital gains tax on the profit you make will be equal to your marginal tax rate. Typically, capital gains tax is broken down into 0%, 15%, and 20%, but the rate can reach up to 28%. The capital gains tax you are charged will depend on your income and the value of the gold sale. Here 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|
Many Illinois investors also opt to invest in gold IRAs for long-term retirement security. However, when choosing the gold assets that will be held in the account, keep in mind the IRS has strict regulations. The following requirements must be met when choosing your gold IRA precious metals:
You must report your gains to the IRS if you sell gold or other precious metals. To report the income, gold sellers must complete Schedule D of Form 1040 on their annual tax return.
However, you may also be required to complete Form 1099-B, depending on the type of metal sold. For example, form 1099-B is needed at the time of sale if you sell:
Gold coins come in a variety of sizes, such as one-ounce, one-half ounce, one-quarter ounce, and one-tenth ounce. They also vary in quality. For example, gold coins minted since the 1800s contain 90% to 92% gold. In comparison, newer coins minted after 2006 contain 99.9% gold. Some dealers also sell alloyed gold coins, which comprise 91.7% gold, with the remainder made of silver or copper to make it more durable.
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: