Disclaimer: This content is for informational purposes only and does not constitute tax advice. Please consult a qualified tax professional for guidance specific to your individual tax situation.
Why Tax Reporting Matters in Precious Metals
When it comes to buying and selling precious metals, understanding a precious metals dealer’s tax reporting obligations is critical. Certain purchases may trigger IRS Form 8300 reporting, while some sales may trigger Form 1099-B reporting. Knowing the difference protects your privacy and ensures compliance with IRS regulations. Let’s break down which types of transactions are reportable and what exemptions exist.
IRS Reporting Requirements for Precious Metals Purchases
The IRS requires dealers to file Form 8300 for cash payments of $10,000 or more received in a single or related purchase transactions. These payments include:
• U.S. or foreign currency
• Traveler’s checks
• Money orders
• Bank drafts and cashier’s checks (under certain conditions)
This requirement is designed to help prevent money laundering and ensure transparency in high-value cash transactions. It applies only to purchases, not sales.
Aggregation Rule for Purchases
If a customer makes multiple cash payments within 24 hours—or in related purchases over a few days—Form 8300 reporting may still be required. This rule is designed to prevent structuring, where a buyer attempts to evade reporting by splitting payments into smaller amounts. Dealers cannot ignore such patterns if they have reason to believe structuring is occurring.
IRS Reporting Requirements for Precious Metals Sales
The IRS requires dealers to report certain sales of precious metals using Form 1099-B, which is generally used to report the proceeds from dealer-facilitated transactions. However, not all precious metals sales are reportable.
The IRS uses reporting criteria based on the types of metals and quantities that are deliverable under Commodity Futures Trading Commission (CFTC)-approved contracts.
What Makes a Sale Reportable?
The following main factors determine whether a transaction must be reported:
Form and Quality – To be reportable, the metal must be in a form and fineness approved by the CFTC for delivery against a regulated futures contract (RFC).
Minimum Quantity – Even if the form and quality qualify, the sale is not reportable if it falls below the minimum quantity required to satisfy a CFTC-approved futures contract.
It’s worth noting that ALL trades of Gold ETF funds or commodity options through a precious metals dealer will appear on the 1099-B they furnish. So physical gold transactions can offer a layer of privacy.
What Precious Metals Sales Are Reportable?
A sale becomes reportable when both conditions (form/quality and quantity) are met. Here are common examples of reportable precious metals transactions:
Gold
• Gold bars with a minimum purity of 0.995 and weighing 1 kilogram (32.15 troy ounces) or more.
• Gold coins such as the Gold Maple Leaf, Gold Krugerrand, and Gold Mexican Onza are reportable when sold in quantities of 25 coins or more.
Silver
• Silver bars with at least 0.999 purity and weighing 1,000 troy ounces or more.
• Sales of 90% U.S. silver coins (pre-1965 dimes, quarters, half-dollars) are reportable when the aggregate face value exceeds $1,000 in a single transaction.
Platinum
• Platinum bars with a minimum purity of 0.9995 and weighing 25 troy ounces or more.
Palladium
• Palladium bars with at least 0.9995 purity and weighing 100 troy ounces or more.
Aggregation Rule for Sales
When a customer sells multiple qualifying items within a 24-hour period, the dealer must aggregate the sales to determine if the transaction meets the reporting threshold. However, aggregation may also apply beyond 24 hours when transactions are related—for example, when a customer intentionally spaces out sales of reportable quantities.
Dealers are expected to file Form 1099-B if the total amount qualifies, even if the sales are structured as smaller transactions over time. If a dealer knows or has reason to know that a customer is engaging in such structuring to avoid reporting, aggregation is still required. This rule—similar in spirit to the Form 8300 guidelines—helps maintain compliance and close loopholes that might otherwise allow for underreporting.
What Precious Metals Sales Are Not Reportable?
Many commonly traded coins and bars do not meet the CFTC criteria and are exempt from Form 1099-B reporting. Here are common non-reportable items:
Gold & Silver American Eagles
• Despite their popularity, Gold and Silver American Eagle Coins are not reportable, regardless of quantity.
Fractional Gold Coins
• Coins less than 1 oz in weight (like 1/2 oz, 1/4 oz, 1/10 oz gold coins) are not reportable due to their fractional size.
Other Exempt Items
• Foreign coins not explicitly named on a CFTC-approved list.
• Gold or silver commemorative coins, medals, or other collector-grade pieces that are not CFTC-approved forms.
• U.S. minted bullion not specifically listed as reportable.
• Any transaction involving metals not associated with a regulated futures contract. That is, sales of gold, silver, platinum or palladium that meet the CFTC quality threshold but not the quantity threshold, or vice versa. For example, a sale of less than 1 kilo of .995 purity gold or a sale of 1 kilo of .99 purity gold.
Final Thoughts
IRS Form 1099-B reporting applies only to specific types and quantities of precious metals. Many common investment-grade coins—such as Gold and Silver American Eagles—are exempt. Form 8300 reporting applies only to cash purchases over $10,000, not to sales.
Understanding these tax reporting rules is essential for any investor in gold, silver, platinum, or palladium. Not only do they affect how you plan your transactions, but they also help you avoid accidental non-compliance with IRS rules.
At the U.S. Gold Bureau, our experienced specialists are well-versed in these regulations. Whether you’re investing in bullion bars or investment coins, we guide you through the process so you can make informed decisions and stay in compliance.
However, it's important to remember: we are not tax advisors. For questions about your specific tax situation, always consult with a qualified tax professional.
As you plan your next precious metals purchase or sale, make sure you’re partnering with a trusted precious metals dealer who understands both Form 8300 purchase reporting and Form 1099-B sale reporting rules—and who can help you navigate them with confidence. And if you're considering buying or selling gold, there's no better time to explore physical bullion. Start your journey today with a 1 oz gold bar—a timeless, trusted way to build wealth and preserve value.
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byUnited States Gold Bureau