Buying Gold and Silver in South Dakota

TAXES IN SOUTH DAKOTA

South Dakota has a statewide tax of 4%. There may also be local taxes added to this, but the maximum sales tax rate in the state is 6%. This applies to some forms of precious metals, but not to all of them. There have been suggestions that this may change in the future as authorities have tried to repeal the tax exemption discussed below. In any case, it is likely that legal tender will remain tax-free.

Anything that is not classified as investment-grade bullion or legal tender is taxed, with the local rate dictating the rate. This includes items such as medals and tokens, which may not carry a high purity. These are not classified as currency and are rarely considered to be investment quality.

Federal Capital Gains Tax

In South Dakota, and indeed across all of the United States, there is a capital gains tax which applies to the profits you make from the sale of gold or silver. There is a maximum rate of 28% across the country, so you will not pay more than this, and the actual amount owed will depend on your income level.

Tax Free Precious Metals

In South Dakota, many forms of bullion and numismatics are exempt from tax. Anything that is defined as legal tender in the United States or any another country, and anything that is classed as precious metal bullion, whether in the form of a coin or a bar, is exempt from the 4% tax rate. There are a number of bullion dealers in the state, including those who stock rare and highly collectible coins. You can also acquire tax-free bullion online.

Source: http://state.sd.us/drr2/businesstax/publications/taxfacts/financial.pdf

ABOUT SOUTH DAKOTA

South Dakota ranks 17th in terms of area amongst US states, but its limited population makes it one of the least densely populated states in the country. The largest city is Sioux Falls, with about 160,000 people. The capital is Pierre, the second smallest capital city in the USA.

Money in the West

South Dakota is not a particularly rich state, with one of the lowest GDPs in the United States. It also has one of the highest per capita income averages at just under $40,000. The wealth in this region comes from service industries and the military. The finance, health care and retail sectors are also active in South Dakota. This state was voted as one of the best states for business just a few years ago and still regularly finds itself on such lists.

Tourism is defined by the iconic American landmark, Mount Rushmore. The historic town of Deadwood, with its legends of the Wild West, is also located in South Dakota, as is the Sturgis Motorcycle Rally, which attracts huge numbers of bike enthusiasts every year.

 

 

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.