Buying Gold and Silver in California

TAXES IN CALIFORNIA

There are tax laws for all of California, as well as for individual cities and counties. State-wide, there is an exemption on all precious metal purchases above $1,500, which means that investors seeking to buy more than an ounce (in 2015 prices) will not need to pay any kind of tax. If the purchase is less than this amount, the sales tax does apply, but this differs from region to region. The state tax is 7.5% (which can be altered by local authorities) on bullion coins and bullion bars, and also on rare coins. Basically anything that falls under the umbrella of a precious metal is subject to this altered regional tax.

It is also worth noting that there is a tax on paper money, which means that collectors seeking to buy rare paper dollars or other paper cash should expect to pay an additional tax.

The following regions in California all have a tax rate different from the 7.5% set by the state:

  • City of Los Angeles — 9%
  • Los Angeles County — 8.75%
  • San Diego — 8%
  • San Jose — 8.75%

Federal Capital Gains Tax

As is the case throughout the United States, if you sell your gold or silver for a profit (which is to say that you received more money than you paid), you are expected to file a tax report for the Federal Capital Gains Tax. This is charged at a maximum of 28%. The actual rate will depend on your personal income. For example, if you buy for $10,000 and sell for $20,000, you will pay $2,800 in tax, and earn $7,200 in profit.

Tax Free Precious Metals

As mentioned above, to avoid the tax in the state of California, you must make a purchase of more than $1,500. This applies only to gold and silver, and only if the purchase was from one dealer.

Source: http://www.boe.ca.gov/sutax/pam71.htm

ABOUT CALIFORNIA

The Golden State is the most populous state in the USA. It has a long and rich history, especially when precious metals and all things that glitter are concerned. This was where one of the biggest gold rushes ever took place, turning a desert backwater into a bright and bustling land of dreams, where many rich investors currently make a living on the gold and silver markets.

Minting Success

San Francisco is home to an office of the US Mint. In fact, the San Francisco Mint was established in 1854 to serve the gold miners as they dug for their fortunes in the hills and valleys of this beautiful state. The Mint bought from the miners, turning their finds into bars and coins, which were then circulated throughout the nation.

The Old United States Mint building, known as the Granite Lady, survived the great San Francisco earthquake. Some of the coins produced here include the rare 1955 Double Die pennies, as well as a number of Morgan Silver Dollars and Liberty Dollars that date from the early days of the United States.

 

 

Note: GoldBroker cannot provide tax, legal, or other advice, so if you are not sure about the taxation to your personal circumstances, we recommend that you seek independent advice from a qualified professional.

All of these texts were accurate at the time of writing, but tax laws are constantly changing and it’s not easy to keep track of those changes. Because of this, we can not be held responsible for any false or out-of-date information.