The simple answer is to store your metals overseas or in one of five states that currently do not charge sales taxes. To date, 41 states have eliminated sales taxes on gold and silver bullion. The only states that continue to levy taxes on the sale of precious metal ingots are Vermont, New Jersey, Maine, Tennessee, Kentucky, Wisconsin, New Mexico, Mississippi and Hawaii. The District of Columbia also taxes physical purchases of gold and silver.
In the United States, the federal capital gains tax applies to all profits made from the sale of precious metals. Simply put, if you buy precious metals and keep them, you're fine, even if they increase in value. However, as soon as you sell them for a profit, you are expected to report to the IRS and pay a maximum of 28% on that profit (the actual rate depends on your personal income). If you store your gold and silver bars somewhere other than your home state, be sure to check that location's sales tax rates.
When you want to buy gold and silver tax-free, don't forget that certain states charge a sales tax, even if you shop online. So, if you have any precious metal on your property (or in a warehouse), the capital gains tax doesn't apply yet. It is recommended to seek professional assistance to obtain specific information on precious metals tax rules and regulations. The enactment of the law would ease some of the tax burdens for investors and would also take a step towards treating gold and silver as money and not as commodities.
The legislation would exempt certain investment metal ingots and coins from the sale and use of certain ingots and coins. The IRS identifies precious metals as collectibles, so they could be taxed at a maximum profit rate of around 28%. A committee of the Virginia House of Representatives recently approved a bill that would expand the sales tax exemption to the sale of gold and silver ingots and coins. When you buy your favorite products in gold and silver bars at BGASC, in some cases you must pay local sales tax for your purchases.
Wholesale sales of monetized ingots, unmonetized gold or silver ingots, and numismatic coins, whose sales are substantially equivalent to transactions with securities or commodities through a national stock or commodity exchange, are exempt from sales tax and use tax. In subdivision (a) (, regulations amended to add provisions relating to the wholesale sales of unmonetized gold or silver ingots and numismatic coins. However, it will be calculated according to how long precious metals were kept and the ordinary rate of income tax. The repeal of these taxes breaks down a barrier that could prevent some investors from considering physical metal for their portfolios.
Ron Paul testified during his testimony in support of an Arizona bill that repealed capital gains taxes on gold and silver in that state. You can buy gold and silver tax-free at Bullion Exchanges online if you order in Alaska, Delaware, New Hampshire, Montana, and Oregon. An Alabama bill would expand and expand the current sales and use tax exemption for the sale of gold and silver.