Buying Gold and Silver in Illinois

TAXES IN ILLINOIS

A lot of investment-grade silver and gold is sold in Illinois, but very little is in South African Krugerrands. This is because, while there is a tax exemption for most bullion, including coins, bars and even rounds, there is no exemption for Krugerrands. This has been the case since 1985, which means that sales of this particular gold coin have been sluggish in the state for more than thirty years.

The sales tax in Illinois is 6.25%, and this is only the basic rate, with local authorities often adding their own taxes. The highest tax rate in the state is just under 10% so, if you are buying Krugerrands, you may have to pay this rate. However, the exemption range is quite broad, so you should be able to secure precious metals that are tax-free.

Federal Capital Gains Tax

Illinois has a Federal Capital Gains Tax. Simply put, the Federal Capital Gains Tax requires you to pay a percentage of the profits that you make from selling precious metals, and this percentage can go as high as 28%. If you hold your investment, you do not owe any money, even if its value increases, but as soon as you sell it and profit from that sale, you are required to pay this tax.

Tax Free Precious Metals

An easy way of working out what is exempt from sales tax in this state and what is not is to say that Krugerrands are not exempt and everything else is, because that certainly seems to be the case. However, it is not that simple. Bullion, medallions and legal tender are all exempt (except for Krugerrands) as is any precious metal item with a purity of at least .980. This includes numismatic coins as well, those valued for their rarity as opposed to their precious metal content.

Source: http://tax.illinois.gov/publications/bulletins/1985/FY85-33.PDF

ABOUT ILLINOIS

Although it is in the middle of the pack of largest US states by area, Illinois has the 5th largest population. Because of its education, culture, economy and many other aspects, Illinois is often said to be a microcosm of the entire United States. The capital is Springfield, but the largest and best-known city is Chicago. This is where Barack Obama and Abraham Lincoln were living when they were elected US President; it has spawned luminaries such as authors Ray Bradbury, Edgar Rice Burroughs and Philip K. Dick, and actors Gillian Anderson, James Belushi and Steve Carell.

The Windy City

Chicago is at the very heart of Illinois. The city of 10 million residents (third largest in the United States) owns a massive history and wields huge importance on the world stage. From big universities and other top-rated educational facilities to great museums and to teams across all major sports, this is a vastly important American city.

The GDP of Chicago is over $500 billion, with business giants McDonalds and Boeing based here. There are also a number of financial exchanges, including the Chicago Stock Exchange.

 


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.