I have only three 1 ounce gold coins that I would like to sell. I purchased these coins in 2005/2006. Do I have to pay capital gains tax when I do my taxes next year. How would the capital gains tax be calculated?

I purchased coins around 600 to 700 dollars. They are now around $1150.

Thanks
Imad

Imad:

Yes, you would pay capital gains, at between 5% and 15%.

I sold the two coins in 2011 and the site I sold my coins through is not required by IRS to report the transaction. How do I report this on my 8949? Can I just mention this on Part II of form 8949 without any 1099? Can I just print my receipts to prove the cost basis and sale price? I still haven't withdrawn money from the website I sold my gold through (I can get it in a day if I want to but I am just keeping it there because I might buy some gold again in future from them).

Thanks
Imad

You are STILL legally obligated to report the sale and the capital gains.

Thanks for your reply.

I know I have to report it. But do I report it on form 8949 in the section of long term capital gains or is there a different form? Thanks

Use the long term capital gains portion of Form 8949

AtlantaTaxExpert your answer is wrong, gold is taxed at the 'collectibles' rate - usually 28%. This also goes for ETF's such as GLD or SLV.

I will NOT context Lewis issue for collectibles, as I have no experience with collectible capital gains transactions.

Quote:

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Originally Posted by lewisrtt

gold is taxed at the 'collectibles' rate - usually 28%.

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Correct - according to IRS Pub 550:

28% rate gain. This gain includes gain or loss from the sale of collectibles and the eligible gain from the sale of qualified small business stock minus the section 1202 exclusion.

Collectibles gain or loss. This is gain or loss from the sale or trade of a work of art, rug, antique, metal (such as gold, silver, and platinum bullion), gem, stamp, coin, or alcoholic beverage held more than 1 year.

We have purchased a gold ornament in 1984 and this being sellout in 2012-13.

I would like to know that, Profit of it being liable to Capital Gain Tax ?

Yes; the gold ornament is considered to be a capital asset, so its sale must be reported on Schedule D.

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