Kentucky produces some of the country’s most popular cars and is home to various large companies. Apart from that, Kentucky is also home to 4.5 million people, many of whom are eager to buy precious metals to build their wealth.
Particularly, residents invest in gold as a way to build long-term wealth, given gold’s stability and resistance to volatility. In addition to gold, residents also chose to invest in silver, platinum, and palladium as a way to diversify their portfolios.
Gold investing can help you protect against market volatility and dollar devaluation. Now, investing in gold is even easier. Kentucky investors can buy gold from brick-and-mortar gold dealers or online for added convenience. Here’s a guide to buying gold online in Kentucky:
Gold investing is subject to tax. All individuals looking to sell gold are subject to a federal capital gains tax. This tax applies to gold sellers who are selling precious metals at a higher price than they were originally purchased. The tax rate depends on the profit you make from the sale. This rate ranges between 0%, 15%, or 20% of the total selling price. However, the rate cannot exceed 28% of the price of gold.
Here is a breakdown of the tax rate based on the seller’s income and 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|
A gold IRA is a retirement account that lets you invest in gold and other precious metals and build wealth for your retirement. In order to open a gold IRA, the precious metals have to meet the following IRS criteria:
The income earned from the sale of precious metals has to be reported to the IRS through your annual tax return. For the majority of products, you need to file Schedule D of Form 1040. However, some transactions need to be reported immediately. Instead, Form 1099-B must be used to report the sale of the following precious metal products:
The price of gold products typically depends on their weight and the amount of gold they contain. A precious metal’s face value is determined by its weight and gold contents. For example, most gold bars contain about 99.9% gold and are solely priced on the amount of gold they contain and their weight. Similarly, newly produced coins also hold 99.9% gold and are priced based on the same factors.However, older coins dating back to the 19th century may contain 90% or 92% gold. Nevertheless, these coins may be worth more than their face value. This is because they may have cultural and historical significance due to their rarity, scarcity, and artistry.
Gold coins are issued by coin mints and weigh between a few grams and a few ounces. 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:
Gold bars are also manufactured by official mints and can weigh from one gram to 400 ounces. The gold bar price is most often based on purity, gold content, and size.
There are also four types of bars you can invest in, including: