Sale Of Silver -Taxation

I'm going to point out for USA readers that according to what I've read, what Biedercoins says above is not entirely true. If a dealer buys your bullion or coins, they are required to file a 1099-B if the purchase exceeds certain limits for specific categories. Indeed there is a $1000 threshold for 90% silver coins, but the threshold for other bullion varies widely. Gold Maple Leafs for example trigger the 1099-B reporting if the dealer purchase exceeds 25 1-ounce coins, which is about $30000 worth. It sounds like the Canadian T5008 is similar to our 1099-B. And if they _sell_ you more than $10000, particularly if you pay cash, it's going to trigger the money laundering laws in the US.

As far as I can tell, there is no "certain amount" exemption, $1000 or otherwise, if you're an owner who is selling. If you made a profit, you report it as capital gains. Yes, if you haven't triggered a 1099-B, the government might not find out about it, but then it's up to your risk tolerance for tax evasion.

Above all, don't take any posts on the internet, including mine, as gospel. Talk to a tax professional.

That's right. I was thinking of much smaller numbers and values when I made the comments. Also, the rules depend on where you live and what you're selling.

There are all sorts of ambiguities on taxation in our hobby. How many of us voluntarily pay sales tax to their states or provinces when we sell or buy coins on ebay? It's law where I live. If you sell some eagles and 90% "junk" silver to one of those strip mall buyers for 9,900 in cash in Iowa, do we volunteer this info at tax time? Did you keep receipts when you bought the silver over the last 12 years?

I agree that it's best to check with a tax pro when you're going to do a major sale because not only will that person be able to tell you what's required by law, they can also give you peace of mind by telling you what you may do. I've done this. Unfortunately, something like selling your AU-MS Lincoln wheat set may require receipts going back many years if it exceeds the exemption amount - whether it has gained value or even if you've lost $$ and want to write it off as a loss. Argghh.!