Do I need to pay taxes when selling just one gold coin?

So just to be clear, even if the dealer doesn't send me a 1099 for selling one coin, I still have to report it myself? And is there a minimum profit amount before I need to worry about it?

Yes, you still need to report the sale even if you don't receive a 1099 form. The dealer reporting requirement is separate from your personal tax obligation. There's no minimum threshold for reporting capital gains from collectibles like gold coins. Even a small profit technically needs to be reported. The IRS expects you to report all income regardless of the amount.

How accurate is the info from this site? I'm always skeptical of tax advice online since there are so many scams.

Does it actually have specific info about gold coins? Or is it just general capital gains stuff that I could find anywhere?

The information is extremely accurate - it's based on actual IRS publications and tax code, not random internet advice. They cite their sources and explain how they interpret the rules for your specific situation. It definitely has gold-coin specific information, which is why it was so helpful for me. It covers the special collectibles tax rate, how to determine if your coins qualify as collectibles vs. bullion, reporting requirements, and even suggestions for record-keeping that can help if you're ever audited.

Wait, how does this actually work? Does it really get you through to a real IRS person? Sounds too good to be true since I've literally never been able to reach them.

This sounds like BS honestly. If it was that easy to get through to the IRS, everyone would be doing it. I've tried calling for 2 months straight about my refund and nothing.

It works by basically acting as a "placeholder" in the IRS phone queue. They have a system that connects with the IRS phone system and waits on hold for you. When an actual IRS agent picks up, their system calls you and connects you directly with that agent. So you're talking to a real IRS employee, not some third-party. I was extremely skeptical too, especially after wasting so much time trying to get through myself. But after waiting over three weeks and never getting past the automated system, I was desperate. It actually worked - got connected with an IRS agent who specialized in investment taxation and got my questions answered. Definitely not BS - if you've been trying for 2 months with no luck, might be worth trying something different.

I do have the original receipt fortunately! I bought it from a reputable dealer about 5 years ago and kept all the paperwork. So my basis would be the purchase price ($1,670) plus the small premium I paid to the dealer ($45), right? That means my taxable gain would be around $635 if I sell at current market value.

Yes, that's exactly right! Your basis is the original purchase price plus any buying fees/premiums, so $1,715 in your case. If you sell for $2,350, your taxable gain would be $635. Keep that receipt safe since the 28% collectibles tax rate often triggers more scrutiny than regular capital gains. Having documentation of your basis is the best protection if there are any questions. Also make sure to report it correctly - it would go on Schedule D and you'd need to check the collectibles box so it gets taxed at the correct rate.

I used TurboTax last year to report selling some silver coins. It does handle collectibles, but you need to make sure you indicate that what you're selling is a "collectible" during the capital gains section. It doesn't automatically know your gold coin should be taxed at 28%. If you just enter it as a regular investment sale, it might apply the wrong rate. There should be a dropdown or checkbox somewhere in the capital gains section where you can specify the type of asset.

Thank you so much for sharing your actual experience with this! It's really helpful to hear from someone who went through the exact same situation. The $178 tax calculation really puts it in perspective - definitely not something I want to overlook or mess up. I'm curious about the record-keeping you mentioned. Besides the original purchase receipt and sale documentation, is there anything else the IRS typically wants to see for gold coin transactions? I want to make sure I have everything properly documented before I actually sell. Also, did you end up using regular tax software or did you need to get professional help because of the collectibles classification?

For record-keeping, I kept the original purchase receipt, the sale receipt from the dealer, and I also took photos of the actual coin before selling (showing the date, condition, etc.) just in case there were ever questions about authenticity or condition affecting value. I also kept a simple spreadsheet tracking the purchase date, sale date, purchase price, sale price, and calculated gain. The IRS likes to see clear documentation of holding periods since that determines whether it's short-term vs long-term treatment. I ended up using TurboTax Deluxe and it handled the collectibles tax rate fine once I made sure to select "collectible" in the asset type dropdown. I didn't need professional help, but I did double-check the final numbers manually to make sure the 28% rate was applied correctly. The key is just being careful during data entry - the software can handle it if you tell it the right asset type.

This is really helpful information about the numismatic vs bullion distinction! I hadn't considered that aspect. My coin is just a standard American Eagle that I bought primarily for the gold content, so it sounds like the collectibles treatment is straightforward. The timing consideration is interesting too. Since I'm only selling this one coin and don't have plans to sell others anytime soon, I think I'll go ahead and do it this year. Better to get it over with and have the cash available. One quick question - when you mention getting a clear receipt from the dealer, should I also ask them to specify the exact gold content and purity on the receipt? Or is the coin type (American Eagle) sufficient for IRS purposes?

For American Eagles, just having the coin type on the receipt should be sufficient since they have standardized specifications that are well-documented. The dealer receipt showing "American Eagle 1 oz Gold Coin" or similar is typically enough for IRS purposes. However, if you want to be extra thorough (which I'd recommend given the IRS scrutiny on collectibles), you could ask them to note the year and condition. This can be helpful if there are any questions about valuation later, since different years can have slightly different premiums even for bullion coins. The most important things for your receipt are: exact sale date, sale price, coin description, and dealer information. Keep both your original purchase receipt and this sale receipt together - having that clear paper trail from purchase to sale makes everything much smoother if there are ever any questions during an audit.

This is excellent advice about tax loss harvesting! I hadn't thought about offsetting the gold coin gain with losses from other investments. I actually do have a few stock positions that are underwater right now - this might be the perfect opportunity to clean up my portfolio and reduce my tax bill at the same time. The point about state taxes is really important too. I'm in California so I know they tax capital gains as regular income, which means I'll be hit with both the federal 28% collectibles rate AND my state marginal rate. Definitely something to factor into my decision. Thanks for mentioning Form 8949 - I want to make sure I don't miss any required forms when filing. It sounds like between Form 8949, Schedule D, and making sure my tax software applies the correct collectibles rate, there are several places where this could go wrong if I'm not careful.