New Mexico, known as the "Land of Enchantment," boasts a rich history intertwined with Native American, Spanish, and Mexican cultures. While it might be famous for its vibrant arts scene and ancient pueblos, savvy residents of New Mexico recognize the value of gold investments to secure their financial future.
As a result, investors choose to invest in gold to grow their long-term wealth. Many will also invest in silver, platinum, and palladium to diversify their portfolios.
If you're looking to buy precious metals, you should understand both federal and state-specific regulations. While the IRS has its guidelines on gold investments, New Mexico also has its tax implications to consider.
When you decide to sell your gold or other precious metals, be prepared to pay federal capital gains tax. The IRS views these metals as collectibles, and if you've held onto them for more than a year, any profit from their sale will be subject to this tax.
The capital gains tax can be as high as 28%, but the exact rate depends on your income. Here's 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|
If you're thinking about opening a precious metals IRA, it's important to know which metals are IRS-approved. The IRS has set specific standards for the metals you can include:
The state of New Mexico does not have a traditional sales tax. Instead, it utilizes a "gross receipts tax." This tax is typically levied on gold sellers rather than the consumer. However, in many cases, businesses pass this tax onto the consumer by incorporating it into the selling price. As such, prices may be higher in New Mexico than the gold spot price due to the gross receipts tax.
The gross receipts tax rate can vary, but the statewide rate is 5.125%. Depending on local additions, this tax can be as high as 8.688%. When it comes to the purchase of precious metals in New Mexico, there is no exemption from this tax. Therefore, when buying gold or silver, consumers should be aware of any additional tax that may be added to their purchase.
Gold coins vary in weight, typically ranging from one to two ounces. Their quality also differs, with newer coins having up to 99.9% gold content. Some dealers might offer alloyed gold coins, which consist of 91.7% gold, with the rest being silver or copper. The gold coin price is often higher than the face value due to scarcity, demand, and design elements.
Gold coins can be categorized into: