Tax Document - 1099 Questions
Below are answers to common questions about tax obligations and IRS reporting requirements when buying or selling precious metals through GBI Direct.
Q: Will I owe taxes if I sell my bullion coins at a profit?
U.S. Customers:
If you hold bullion as an investment and later sell it at a profit, you will have a taxable gain. The tax treatment depends on how long you held the asset and applicable IRS rules for collectibles. Please consult your tax professional for guidance specific to your situation.
International Customers:
Please consult a local tax adviser for the rules pertaining to your jurisdiction.
Q: When will I receive a 1099?
Did you sell any metals the previous year?
No = no tax documents will be created
Yes = see below.
Q: Will I receive tax documents from GBI Direct?
As a broker, GBI Direct is required to report certain SELL transactions to the IRS on a Form 1099-B. Reportable transactions currently include:
- 1,000 troy oz. or more of silver bars per transaction
- 25 oz. or more of Canadian Gold Maple Leaf coins per transaction
- 1 kilo (32.15 troy oz.) or more of gold per transaction
The table below summarizes ICTA guidelines for reportable transactions (as of the date of this publication):
|
Reportable Item |
Minimum Fineness |
Minimum Reportable Amount |
|
Gold Bars |
0.995 |
Any size bars totaling 1 Kilo (32.15 troy oz) or more |
|
Silver Bars |
0.999 |
Any size bars totaling 1000 troy oz or more |
|
Platinum Bars |
0.995 |
Any size bars totaling 25 troy oz or more |
|
Palladium Bars |
0.9995 |
Any size bars totaling 100 troy oz or more |
|
Gold 1 oz Krugerrand |
as minted |
Twenty-five (25) 1 oz coins |
|
Gold 1 oz Maple Leaf |
as minted |
Twenty-five (25) 1 oz coins |
|
Gold 1 oz Mexican Onza |
as minted |
Twenty-five (25) 1 oz coins |
|
U.S. 90% Silver Coins |
as minted |
Any combination of dimes, quarters, or half-dollars totaling $1,000 face value or more |
Certain items are exempt from 1099 reporting requirements:
- American Silver Eagle 1 oz. coin
- Canadian Silver Maple Leaf 1 oz. coin
- Austrian Philharmonic Silver 1 oz. coin
- American Gold Eagle 1 oz. / ½ oz. / ¼ oz. / 1/10 oz. coins
- American Gold Buffalo 1 oz. coin
This information is provided for general guidance only and does not constitute tax or legal advice. Tax laws are subject to change. Always consult a qualified tax professional regarding your specific circumstances.