Gold was first discovered in northern Minnesota in 1865, which led to the Vermilion Lake gold rush. However, only tiny amounts of gold were found, which led the prospectors to abandon the area. Then, in 1983, gold was discovered on Little American Island in Rainy Lake. The discovery attracted many miners to the northern region, where they settled.
Around 160 years after the discovery of gold in Minnesota, the gold spot price today suggests that the cost of gold has steadily increased over the years. However, before buying precious metals in Minnesota, make sure you are familiar with federal and state laws.
For instance, the IRS imposes a capital gains tax on gold purchases, and Minnesota has its own statewide sales tax. When you’re ready to invest in gold online, visit a reputable gold dealer’s website, browse their products, and choose the metals you want to invest in.
The IRS considers precious metal investments to be capital assets that are classified as collectibles. As a result, you will be subject to federal capital gains tax when you sell gold and other precious metals after holding them for at least one year.
The amount you are taxed depends on the profit you make from the transaction. Depending on your income, the tax rates are 0%, 15%, and 20%, or a maximum of 28%. The capital gains tax rates for 2023 are broken down as follows:
|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|
The IRS has strict regulations regarding the types of assets you can hold in a gold IRA. So, if you want to invest in silver and gold through an IRA, make sure that the assets meet the following requirements:
Investors are required to report their profits from selling gold or other precious metals to the IRS. To report income, sellers must complete Schedule D of Form 1040 on their annual tax return.
However, depending on the type of metal sold, they might be required to complete Form 1099-B instead. The latter is required when you sell:
Gold coins come in different sizes ranging from one-tenth ounce to one ounce. They also have varying qualities, with older minted coins containing 90% to 92% gold and newer coins containing 99.9% gold. You may also find alloyed gold coins, which are comprised of 91.7% gold, with the remainder being made up of silver or copper.
There are four types of gold coins: