Buying Gold and Silver in Kentucky

TAXES IN KENTUCKY

The state of Kentucky has a sales tax of 6% in place, which applies to the purchase of all precious metal bullion and numismatics. This includes bullion coins and bars, tokens, medallions, rare coins, legal tender and anything else that falls under the umbrella of “collectibles.” There are many coin dealers operating in the state, but with such high taxes and no exemptions, local taxes make online competition tough. There have been attempts to change the law but these have had no success.

Federal Capital Gains Tax

Precious metal investors don’t have it easy. It is a very tricky game to enter, because it seems that the government is always looking to take a piece of your profits. As well as sales taxes, which exist in many states, there is also a Federal Capital Gains Tax in effect throughout the nation. This is a tax of up to 28% that is due every time you profit from the sale of precious metals.

Tax Free Precious Metals

There are no exemptions to the precious metal tax in Kentucky, which means that there is no way to acquire tax-free precious metals when buying within the state. However, you can purchase from an online dealer. In such cases, you will need to pay shipping and handling costs, but with large orders these costs will be fractional when compared to what you would pay in sales tax.

Many investors also look to overseas storage companies when investing in precious metals. As long as you do not arrange for shipment of your precious metals to your home address, the only expense is a small annual management fee for storage.

Source: http://revenue.ky.gov/business/salesanduse.htm

ABOUT KENTUCKY

The Bluegrass State is rich in history, culture, food, drink, and hospitality. This is the heart of the South. At its center is the city of Louisville, the biggest in the state. In fact, Louisville is home to three-quarters of a million people, a figure that rises to nearly 1.5 million if you include the wider Metropolitan Area. It is the 30th most populous city in the USA and home to the iconic Kentucky Derby.

Thanksgiving Central

There are more turkeys per capita in Kentucky than in any other US state. Of course, turkeys are bred elsewhere as well and this is far from a monopoly, but they still breed an impressive number of these holiday birds.

Kentucky manufactures a large number of automobiles and some of the country’s most popular cars, including the Lincoln Navigator, Toyota Camry, Ford Escape and Ford Expedition, are assembled in Kentucky plants. Other industries that drive the Kentucky economy include corn, coal, fuel, and cattle. The world’s best bourbon is made here—brands such as Jim Beam and Jack Daniels—and this state is also where you will find the headquarters of Papa Johns, KFC and other giants of the food industry.

 


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.