Gold was first discovered in New Jersey in 1829 in areas around Franklin. In 1880, the state had a short but intense gold rush. Nonetheless, gold has always been of interest to investors in New Jersey as it has historically proven to increase in value over time.
Before buying gold in New Jersey, make sure you are familiar with federal and state laws, like capital gains tax and statewide sales tax. It’s also worth checking the current gold spot price to get a sense of what you’re ready to pay. When you’re ready to invest in gold online, visit a precious metal dealer’s website, browse their products, and choose the metals.
Those keen on diversifying their portfolio in New Jersey need to understand gold and silver prices and the associated tax implications. The IRS considers precious metal investments capital assets classified as collectibles. So, investors must pay federal capital gains tax when selling physical gold and other precious metals. As such, capital gains tax is owed if the precious metals are sold after being held for at least one year.
The capital gains tax rate depends on the profit you make from the sale, reaching a maximum of 28%. Depending on your income, the tax rates are 0%, 15%, and 20%.
The following 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|
When looking for some of the best gold to buy, keep in mind that the IRS has strict regulations regarding the types of assets you can invest in your account. Here are the eligibility requirements:
Investors must disclose to the IRS any profits they make from the sale of gold or other precious metals. To declare income, they must complete Schedule D of Form 1040 on their annual tax return.
However, depending on the type of metal sold, they might also be required to complete Form 1099-B. Form 1099-B 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 dating back to the 1800s containing 90% to 92% gold. In comparison, newer coins produced in the 2000s are made of 99.9% gold. You may also find alloyed gold coins, which comprise 91.7% gold, with the remainder being made up of silver or copper.
There are four types of gold coins: