Quote:
Originally Posted by retiredguy123
Sounds good, but the IRS doesn't agree.
From AI and Smartasset:
"The IRS taxes capital gains on gold the same way it does any other investment assets. But if you have bought physical gold, you'll likely owe a higher tax rate of 28% as a collectible. Mar 28, 2025."
From Bankrate:
"Capital gains on physical gold are taxed as collectibles and can be higher than the standard long-term capital gains tax rate. The maximum capital gains tax rate on collectibles, including physical gold, is 28%. This means that if you hold gold for more than a year and sell it for a profit, you may owe 28% of that profit in taxes, according to Bankrate."
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As I understand it, gold ETF’s like IAU also incur the 28% capital gains hit on profit taken on sale. News articles out there about many retirees buying gold ETF’s without realizing this.