Buying gold and silver in Connecticut

TAXES IN CONNECTICUT

There is a basic sales tax of a little over 6% in the state of Connecticut. This means that it is the lowest you will pay, but with additional taxes imposed by local authorities, the actual amount you will pay will often be greater than this, albeit not by much. This is quite a high tax rate and, if not for the exemptions discussed below, it would make Connecticut a bad choice for precious metal investors. These exemptions, in fact, make this state a great place to purchase gold, silver, platinum and palladium.

Federal Capital Gains Tax

If you sell any precious metals for a profit in the state of Connecticut, then you will owe a Federal Capital Gains Tax. This amount differs greatly, but there is a maximum rate of 28% and, in many cases, you will pay much less than this. A capital gains tax applies to your profits only—not if you sell at a loss or if you simply hold onto your investment.

Tax Free Precious Metals

Exemptions to the tax rule kick in when the purchase amount exceeds $1,000. Prior to that point you will owe the tax rate mentioned, but as soon as you get above this amount, you won’t pay a single penny in tax. Because of this, Connecticut investors are advised to wait until they have more than $1,000 to invest. Small purchases of gold coins or quantities of silver are, accordingly, very rare.

Of course, $1,000 is not a lot to the typical investor as it is not even enough to buy a single gold coin. It can present a challenge for small-time investors, particularly those interested in low quantities of silver. In such cases it might be better to buy online, although you will need to shop around to ensure that the shipping and handling fees are kept to a minimum.

Source: http://www.taxrates.com/state-rates/connecticut/

ABOUT CONNECTICUT

Connecticut is the fourth most densely populated state in the United States, with a population of around 3.5 million in the third smallest territory in the country. It is the southernmost state in New England. The 2010 census reported that the state of Connecticut had the highest per capita income in the entire United States, and it continues to flourish to this day.

Individual Wealth

At a little over $230 billion, the GDP of Connecticut is not the highest in the USA, and while it is impressive for such a small state, what is even more remarkable is the average income per capita. Still, even though many industries thrive in the state and even though there are many rich businesses and workers here, Connecticut has one of the highest unemployment rates in all of the United States.

Historically, Connecticut hasn’t offered much to tourists, but that changed with the creation of the Foxwoods Resort, one of the biggest casino resorts in the world. This colossal building is actually close to a dozen different casinos and hotels all lumped into one, and there is enough here to keep an army entertained for months. The money gambled and spent at Foxwoods 24/7 and 365 goes a long way to keeping the state’s coffers full.

 

 

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.