The price of gold and other precious metals has been rising steadily for decades. This is one of the main reasons why people buy precious metals as a long-term investment. Diversifying your portfolio with gold may help you grow long-term wealth with relatively little risk.
If you’re planning to invest in gold online, it’s worth knowing the rules and regulations on gold and other precious metals in your state. This guide aims to help Wisconsin residents familiarize themselves with the state’s precious metal laws.
At the federal level, capital gains tax is applied to individuals who sell gold. The federal government charges this tax on all commodities purchased and held for at least one year. Precious metal sellers are charged a percentage of the profit they make from the transaction.
The tax rate depends on the income you gain on the gold coin price or gold bar price, but the total will never exceed 28%. The capital gains tax is due when the transaction is fully completed. Based on your profit and filing status, the tax rate will be equal to the following:
|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|
Besides buying gold coins and bars, another method of investing in gold is by establishing a gold IRA. It is a retirement account that works exactly like a traditional IRA but lets you hold gold products. Items have to match the following requirements by the IRS to be allowed inclusion in a gold IRA:
Sellers that earn a profit from selling precious metals in Wisconsin have to report their income to the IRS. Sellers are required to file Schedule D of Form 1040 on their annual tax return for most precious metal transactions. However, if the transaction involves one of the following products, the seller must report the sale immediately using Form 1099-B:
The state of Wisconsin has a 5% sales tax on precious metal transactions. However, the state sales tax can reach 5.6% in some regions. This is because certain towns or counties may charge additional local-level taxes.
This tax is applied on all items that are either collectible or sold above their face value. This covers rare coins, as well as bullion exchanges, and all other products listed as collector’s items.