Do You Report Purchases to the Government?
The majority of precious metals purchases from BGASC are not reported to the government. We are, however, obligated to file a Form 8300 when a cash purchase exceeds a value of $10,000. We are likewise obligated to file that Form 8300 for any cash transactions made within 24 hours of each other that reach and exceed $10,000. Please note that this minimum applies to cash transactions using cashier’s checks and money orders.
Product buybacks do have reporting requirements as well. Certain products that BGASC may by from customers must be reported to the IRS. Those products require the completion of a Form 1099-B. For the 1099-B to be filed, customers must also complete a Form W-9. BGASC will provide customers with a Form W-9 during the buyback process. This form must be completed and received by BGASC prior to completion of the buyback. The Form 1099-B will then be mailed to customers by February 15 in the year following completion of the buyback.
The following list from the ICTA offers guidelines related to reportable precious metal sales. These guidelines and any IRS rules related to precious metal sales are subject to change without notice. Reportable precious metal transactions:
- Gold bars with .995 minimum fineness in any size totaling 1 Kilo (32.15 Troy oz) or more
- Silver bars with .999 minimum fineness in any size totaling 1000 Troy oz or more
- Platinum bars with .995 minimum fineness in any size totaling 25 Troy oz or more
- Palladium bars with .9995 minimum fineness in any size totaling 100 Troy oz or more
- Gold 1 oz Krugerrand in as minted fineness totaling 25 1 oz coins
- Gold 1 oz Maple Leaf in as minted fineness totaling 25 1 oz coins
- Gold 1 oz Mexican coins in as minted fineness totaling 25 1 oz coins
- US 90% silver coins in as minted fineness in any combination of dimes, quarters, or half-dollars that total $1,000 (USD) face value or more