Gold deposits are not very common in Missouri. Unfortunately, all the gold discovered in the state is extra-fine and in small amounts near the Missouri River. However, this didn’t stop Missourians from wanting to buy gold as it holds long-term growth opportunities.
If you would also like to start gold investing, make sure you are aware of federal and state laws, such as capital gains and sales tax rates. Once you have familiarized yourself with the rules and regulations, visit gold dealers’ websites to browse their products and buy precious metals.
You are subject to IRS capital gains tax if you sell gold or other precious metals. This is because the IRS considers precious metal investments collectibles. Therefore, if the precious metal is held for at least one year and then sold, you will be taxed on the profit. Note that the capital gains tax will only be applied after the transaction is completed.
Your capital gains tax is equal to your marginal tax rate. The capital gains tax rates are 0%, 15%, or 20%, depending on your income. However, it can reach a maximum of 28%. Below is a breakdown of the capital gains tax rate 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|
If you’re considering opening a precious metals IRA, be sure to invest in silver and gold, but be careful about the types of assets you can invest in because the IRS has strict regulations. Here are the requirements that your precious metal products must meet:
When you sell gold or other precious metals, you 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.
However, depending on the type of metal that is sold, Form 1099-B might also be required by the IRS. Form 1099-B is required at the time of sale when you sell:
In addition to capital gains tax, Missouri residents who buy gold in-store or online may also be subject to sales tax. The sales tax rate is 4.225% in Missouri. Nonetheless, local municipalities can add an additional 1% to 4%, reaching a maximum of 8.225%.
However, according to Missouri law, all purchases of precious metals, regardless of the amount or form of the metal, are free from sales taxes. These include gold and silver bullion, coins, and collectibles.
Gold coins for sale typically weigh one to two ounces. However, you may also find lower denominations such as half-ounce, quarter-ounce, and one-tenth-ounce coins available at some dealers. In addition, gold coins come in different grades, with newer coins containing 99.9% gold while older coins have 90% to 92% gold. Some dealers also sell 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: