Buying Gold and Silver in Michigan

TAXES IN MICHIGAN

We will look at the precious metal tax exemptions in the state of Michigan, which are quite broad but do not cover everything. For instance, any “legal tender” produced by an unrecognized nation does not qualify for tax exemption, nor do medallions, tokens or paper currency. In such cases you can expect to pay the 6% sales tax imposed by the state, and in some counties you will pay additional local taxes.

Federal Capital Gains Tax

The Federal Capital Gains Tax applies across the state of Michigan and across the United States. This is due on all profits made from the sale of precious metals, collectibles and other investments, and it applies to all forms of bullion and numismatics. The exact amount you owe depends on your income, but there is a maximum rate of 28%.

Tax Free Precious Metals

A lot of precious metal bullion is exempt from sales tax in this state, so it’s important to understand what the state classifies as precious metal bullion. Firstly, it refers to only three kinds of metal: gold, silver and platinum. Anything else may be subject to tax. The precious metal in question also needs to be at least .900 pure, which pretty much covers all precious metal bullion and many numismatic pieces. In fact, numismatic pieces are typically covered regardless of purity, because this tax exemption also covers all legal tender, whether it is an official currency of the United States or other country.

The vast majority of investors can make purchases tax-free. If your item does not enjoy tax exemption status, you can buy it online to avoid state sales taxes.

Source: http://www.michigan.gov/taxes/0,1607,7-238-43529-155505--,00.html

ABOUT MICHIGAN

Michigan is the 11th largest state in the country, bordering Canada and connected in one way or another to four of the five Great Lakes. In addition to the big lakes that make up this great state, there are close to 65,000 smaller lakes in Michigan.

The capital of Michigan is Lansing, which has a relatively small population of just over 100,000 people. However, the biggest city, and the one that many people associate with Michigan, is Detroit.

Rich and Poor

While it is a vibrant city with a beautiful skyline, Detroit is not without its problems, with some of the poorest regions in the United States there. There are close to three-quarters of a million people that call this city home, with a large percentage of the working population at companies like Quicken Loans, General Motors, DTE Energy and the Detroit Medical Centre, all of which have headquarters in the city. The MGM Grand Casino is also a large employer.

The poverty crisis happened fairly recently, during what many called the “Fall of Detroit”. Once a manufacturing giant, the city declared bankruptcy, owing more than $20 billion to over 100,000 creditors. At the height of Detroit’s success, there were nearly 300,000 people employed in its factories—in 2015 there was less than a tenth of that.

 


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.