|
|
Post by tiredturkey on Jun 2, 2011 17:15:27 GMT -5
If an individual buys and sells gold coins such as Krugerands, does the transaction create a capital gain or loss for tax purposes? An acquaintance says the coins are considered collectibles and sales are not subject to taxation like sales of other asset classes.
|
|
mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
|
Post by mwcpa on Jun 2, 2011 19:34:35 GMT -5
the acquaintance is not correct.... gains on the sale of collectibles are subject to tax.... from IRS publication 17 "Gold, silver, stamps, coins, gems, etc. These are capital assets except when they are held for sale by a dealer. Any gain or loss from their sale or trade generally is a capital gain or loss. " more information can be found here.... www.irs.gov/newsroom/article/0,,id=106799,00.html |
|
|
|
Post by commentator on Jun 2, 2011 20:35:32 GMT -5
Note that the top tax rate on gains on sales of collectibles is 28%. In a way, the OP's acquaintence was correct. Collectibles are not taxed like sales of other [capital] assets - they're taxed more heavily.  |
|
