Historically, investors have chosen to buy precious metals to protect their assets from external factors such as inflation and economic crashes. Of all the precious metal investment options, investors continue to invest in gold most often.
This is because the gold spot price has historically been resistant to dollar devaluation and market volatility. Today, you can also buy gold online if you search for reputable gold dealers and get it delivered to you in Washington, D.C.
Washington, D.C., or the District of Columbia, has a special status since it is a territory of the U.S. and not a state. Therefore, before purchasing gold in Washington, D.C., you should review federal and state laws.
The federal government charges a capital gains tax on all precious metal transactions. This tax is applied to assets that have been held for more than a year and then sold for a profit. Capital gains tax applies when you sell gold, silver, platinum, and palladium.
The tax rate depends on the profit you make from selling the product. It is usually 0%, 15%, or 20% based on your income bracket and filing status. However, the rate cannot exceed 28% of the total transaction value. This table illustrates the capital gains tax rate in more detail:
|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|
Many people open a gold IRA to invest in gold. A gold IRA is a retirement account that works exactly like a regular IRA but allows investors to hold precious metal products and stocks in gold mining companies. Not all gold products can be included in the IRA. The IRS has a list of approved precious metals that have to meet the following requirements:
Gold coins for sale usually hold 99.9% gold, but some older coins may be 90% or 92% pure. You can also find alloyed coins, which hold 91.67% gold and are sometimes referred to as “916 coins.”
Gold coins come in four different types: