The attention of investors toward precious metals in Texas started back in the 19th century. Fast forward to 2015, the Lone Star State became the first state ever to open its own gold depository. If you live in Texas and are looking for an investment to grow your wealth, you can invest in gold and silver.
Like every state across the country, Texas has its unique sales tax rules and regulations. So, before you buy precious metals, take some time to familiarize yourself with capital gains tax rates and IRS regulations.
Gold sellers in Texas are subject to federal capital gains tax. The IRS identifies precious metals as collectibles and requires you to pay this tax if you’ve held these assets for at least one year.
The exact amount of the tax usually depends on your personal income and can be either 0%, 15%, or 20% of your profit. However, the capital gains tax cannot exceed 28%. Here is a breakdown of capital gains tax rates based on filing status:
|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|
For a while, the IRS only permitted holding American Eagle gold or silver coins in IRAs. Today, the number of different coins has expanded thanks to the Taxpayer Relief Act of 1997. Therefore, the IRS has established rules and regulations about the types of precious metals allowed in IRAs. The coins should match the following requirements to be allowed in IRAs:
That said, these are types of precious metal products currently allowed by the IRS.
When you sell precious metal bullion and coins, you are required to report your profits to the IRS. To do so, you must complete Schedule D of Form 1040 on your annual tax return.
If you sell certain bullion products, you should report to the IRS using Form 1099-B. This document applies to the following transactions only:
The sale of precious metal coins in Texas is not subject to sales tax. Therefore, gold, silver, and numismatic coins are exempt from Texas sales tax. However, this exception does not apply to gold, silver, and numismatic coins in the form of jewelry and other adornments.
Numismatic coins are classified as coins whose external value is more than the base value of the precious metal content. The external value is often due to the coin’s rarity, condition, and age.
Gold coins usually weigh one to two ounces, but some gold dealers may sell half-ounce and quarter-ounce coins, too. Older coins may contain 90% to 92% gold, while newer coins typically hold 99.9% gold. It is also common for some dealers to sell alloyed gold coins that contain 91.7% gold, with the remainder made up of silver or copper.
When looking for some of the best gold to buy, remember that there are four types of gold coins you can purchase and sell: