South Carolina, known for its rich history and beautiful landscapes, has always had a connection to precious metals. From the early days when pirates roamed its coast to the modern era, where residents understand the value of a stable investment, gold has played a part in the state's story.
Even today, many South Carolina residents choose to invest in gold and buy precious metals for long-term growth. Many also invest in silver, platinum, and palladium to diversify their portfolios.
If you're a resident of the Palmetto State and want to invest in gold, you should be informed about the process and the regulations that apply.
When you decide to sell gold or other precious metals, be aware that the IRS will require you to pay capital gains tax on any profits. Precious metals are considered capital assets and are classified as collectibles. If you've held onto your gold for more than a year before selling, you'll be subject to this tax.
The capital gains tax corresponds to your marginal tax rate, with a cap of 28%. Depending on your income, the rates are 0%, 15%, or 20%. Here's a detailed 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 of opening a precious metals IRA, it's crucial to know which assets are IRS-approved. The IRS has set specific guidelines for the types of metals that can be included:
South Carolina residents need to be aware of the state's sales tax when they buy gold and other precious metals, even if they buy gold online. When you buy silver, gold, or other precious metals, you will be charged a 6% sales tax. In some local counties and cities, this rate may be higher.
Luckily, most precious metals are exempt from this sales tax. Precious metals that are considered legal tender in the U.S. or internationally; bars and rounds made of gold, silver, platinum, and rare coins are all exempt from South Carolina’s sales tax.
Gold coins are available in weights ranging from a few grams to a couple of ounces. They come in different purities, with newer coins having up to 99.9% gold content. The gold coin price often depends on its size and gold content, but certain coins might cost more than the gold spot price due to their rarity, demand, and design.
There are four primary types of gold coins: