Vermont, known for its picturesque landscapes and rich history, has always had a keen interest in preserving its heritage. While it may not have the gold rush tales like California, Vermonters understand the value of stability and long-term investments.
That’s why many Vermont 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.
Before diving into the world of precious metals, you should be well-versed with both federal and state regulations. The IRS has specific guidelines regarding capital gains tax on gold, and Vermont has its distinct tax rules concerning gold purchases.
When you sell gold, you will be required to pay capital gains tax according to IRS regulations. Precious metals are considered capital assets and fall under the category of collectibles. If you've held onto your gold for over a year before selling, you'll be liable to pay this tax.
The capital gains tax aligns with your marginal tax rate, capped at 28%. Depending on your income, the rates can be 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|
For those considering a precious metals IRA, you must know which assets are IRS-approved. The IRS has stringent criteria for the types of metals permissible in an IRA:
Gold coins usually weigh between one to two ounces. Their quality varies, with older coins containing 90% to 92% gold and newer ones boasting a 99.9% gold content. Some reputable gold sellers also offer alloyed gold coins, which comprise 91.7% gold, with the rest being silver or copper.
Gold coins' prices are often determined by their size and gold content. However, certain coins might be priced above the gold spot price due to factors like rarity, demand, and unique design elements.
There are four primary types of gold coins: