One of the first gold rushes occurred in Tennessee in 1827, when gold was discovered in Monroe County, right at the foothills of the Appalachian Mountains. While Tennessee is renowned for its deep-rooted history in country, blues, and soul music, it’s also known for buying gold online.
Gold investing can help you hedge against inflation and tumultuous economic times. There are a variety of gold products you can purchase, from coins to minted bars. These can be obtained either from physical stores or online.
The gold spot price today and silver spot price are indicators to determine the best time to buy precious metals. But before you invest in gold and build wealth, it’s important to get to know the state laws in Tennessee because each state has its specific taxes and regulations on buying and selling precious metals.
Those looking to sell gold in Tennessee are subject to a federal capital gains tax. This tax is usually applied to the sales of assets that appreciated during the time it was held. However, the capital gains tax still applies on a federal level. The tax rate is 0%, 15%, or 20%, based on your taxable income for the year. It cannot exceed 28% of your income from the sale.
Here’s a breakdown of the tax rates based on the profit you make from the transaction:
|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|
Another way of investing in gold is establishing a gold IRA. This retirement fund works exactly like a traditional IRA, but instead of stocks and bonds, you can hold precious metal products like coins, bars, and bullion.
Not all gold and other precious metal coins are allowed to be included in a gold IRA. The IRS approves only those coins that meet the following criteria:
While there is no capital gains tax in Tennessee, you still need to report your income from selling precious metals, like gold and silver, on your tax return. The IRS requires all gold, silver, platinum, or palladium sellers to fill Schedule D of Form 1040 on their annual tax report.
In some cases, the seller needs to report his income to the IRS using Form 1099-B instead. This applies to only the following transactions:
In June 2022, Governor Bill Lee signed HB 1874/SB 1857 into law. This law exempts all coins, currency, and bullion from sales tax in Tennessee if they are:
The gold spot price depends on different factors. Primarily, gold items are valued based on their:- Gold content
However, some coins may sell at a higher price than their face value. In some cases, a specific coin’s rarity, scarcity, condition, design elements, and demand may elevate its value.
Gold coins usually carry a historical or aesthetic value. Most older coins contain 90% to 92% gold, while newer ones contain about 99.9% gold. Some dealers also sell alloyed gold coins that hold 91.7% gold, and the remainder is typically made up of silver or copper. They can weigh anything from a few grams to a few ounces.
There are four types of gold coins you can buy and sell in Tennessee:
Gold bars are cast or minted items that contain more than 99.9% gold. Unlike coins, bars are valued based solely on their weight and gold content. They can weigh from one gram to 400 ounces. Gold bars can be obtained from certified gold dealers and come with their manufacturer, weight, and purity inscribed on them.
Gold bars come in four different types: