Although relatively small in size, North Carolina is one of the ten largest U.S. states by population. With more than 10 million residents, people in North Carolina have been investing in gold for centuries, considering gold a good long-term investment.
Gold investing can serve as a hedge against inflation. It can also help protect against market volatility, such as stock market crashes and U.S. Dollar devaluation. Until recently, the only way to invest in gold was by visiting a dealer in your city. However, now you can also acquire gold coins and bars online with the current gold spot price from the comfort of your home.
All precious metal sales are subject to a federal capital gains tax. This tax is only paid if the precious metal is sold for a profit. The tax rate can be 0%, 15%, or 20%, depending on the profit you make from it, but never more than 28% of the transaction value.
The capital gains tax is due only when you finish selling the product. Additionally, capital gains tax applies to precious metals that are held for at least one year and then sold. Here is a breakdown of the tax rate:
|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 looking to buy gold bars or invest in silver through an IRA, you should first check if they’re IRS-approved. A gold IRA is an alternative type of retirement account where you can buy precious metal products. Only the assets that meet the following criteria can be included in an IRA:
All gold transactions should be reported to the IRS. Sellers shouldn’t worry about reporting at the time of the transaction but must file Schedule D of Form 1040 on their annual tax return. Most precious metal products fall under this reporting category. However, the following transactions should be reported at the time of sale using Form 1099-B instead:
All sales of gold coins, bars, and bullion are subject to a state sales tax. The standard tax rate in North Carolina is 4.75%, but this is rarely what you will pay. This is because most counties and cities impose additional taxes. In total, the sales tax payable will usually be between 6.75% and 7.5%. Some local rates in North Carolina are as follows:
The gold spot price and silver spot price are mainly determined by their purity and weight. Newer coins have purity standards of 99.9% and above, while older coins from the 19th century can be 90% to 92% pure. However, older coins can sometimes be priced more than their face value because of their scarcity, rarity, demand, and design elements.Gold bars typically contain 99.9% gold and are solely priced based on their purity and weight. Unlike coins, they do not have any cultural or aesthetic value.