Precious metal ingots and coins that are used or were once used as currency or medium of exchange in the United States or in a foreign country (such as 25-cent coins, dimes, five-cent coins, and one-cent coins) are exempt. When it comes to precious metals in Washington, you should only buy bullion coins, as they don't carry a sales tax. Rare coins, in some areas, including Seattle, are subject to taxes of up to 9.5% more, which can ruin investment. It's not always easy to determine what is classified as a collector's item and what is a standard ingot coin, but the dealer must know and apply the tax.
Gold and silver bars may attract unwanted attention or require special statements for monetary instruments, but a gold necklace is, well, just another gold necklace. In terms of precious metals, capital gains occur when a certain coin or piece of ingots increases in value after the initial purchase and is then sold at a higher price. This law is quite broad, but it basically covers any gold or silver that has been used or can be used as currency in the United States or any other country. These pieces include, among others, gold coins with fractional denominations; American Eagle gold or silver coins; any piece of foreign currency that has not been explicitly mentioned in the IRS's list of reportable items, as well as U.S.
currencies that were created after the list was created in the 1980s. That's why it's important to check with your certified public accountant about taxes on your gold investments.
