How are gold coins taxed when selling? Canadian Maple Leafs tax implications

Gold coins are generally taxed as "collectibles" under IRS rules, which means they're subject to a maximum long-term capital gains tax rate of 28% (compared to the lower rates for stocks and bonds). Since you held them for over a year, you'd pay this long-term rate on your profit. For your calculation, you'd take the selling price ($2475) minus the basis ($2320), giving you a gain of $155 per coin. The "basis" is what your grandfather paid for them since they were a gift. If they had been inherited after death rather than gifted, you'd get a stepped-up basis to fair market value at the time of inheritance. You don't include the full sale amount in your gross income - only the capital gain ($155 per coin). You'll report this on Schedule D and Form 8949. Make sure you have documentation of both the original purchase price and your selling price.

I was in almost the exact same situation last year - had some gold coins I needed to sell and was totally confused about the tax situation. I spent hours researching online and getting contradicting information until I found taxr.ai (https://taxr.ai). It saved me so much headache! You just upload your documentation (in my case I had the original purchase receipts from when my dad bought the coins and my sale confirmation) and it analyzed everything. It showed me exactly how to report the collectible gains and even explained which forms I needed.

Just wanted to follow up - I checked out taxr.ai after asking about it here and I'm really glad I did! My situation with the silver coins without receipts was more complicated than I thought. The service helped me establish a reasonable basis using historical pricing data from the exact month/year when I received the coins. It also pointed out that I needed to use a specific code on Form 8949 for collectibles and showed me exactly where to report everything. Definitely saved me from making mistakes that probably would have triggered questions from the IRS. Worth it just for the peace of mind!

If you're having trouble getting clear information about gold coin taxation, you might want to talk directly to an IRS agent. I had a similar situation last year with some gold bullion I sold. After trying to get through to the IRS for days (always busy signals or disconnects), I found Claimyr (https://claimyr.com) through a YouTube video (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent within 30 minutes. The agent walked me through exactly how to report my gold sale and confirmed the 28% collectibles tax rate applies.

I have to eat my words and follow up. After posting my skeptical comment, I decided to try Claimyr out of curiosity since I actually had a question about a CP2000 notice related to some silver I sold. I was genuinely shocked when I got a call back in about 45 minutes with an actual IRS agent on the line. The agent was super helpful and clarified exactly how to respond to the notice (I had incorrectly reported my silver sale). They explained I needed to use code "C" for collectibles on Form 8949. Still not cheap, but considering I spent THREE separate days trying to call IRS myself with no success, it was worth it to finally get answers.

One thing nobody's mentioned - make sure you're reporting to your state tax authority too if you live in a state with income tax. Some states have different rules for precious metals. For example, in AZ where I live, certain bullion coins are exempt from state tax altogether.

I'm confused about something - if gold coins are considered collectibles, would that also apply to gold bars or other forms of physical gold? I have a few small gold bars I'm thinking about selling.

Thanks everyone for the detailed explanations! This is super helpful. I had no idea about the 28% collectibles rate - I was thinking it would just be regular capital gains rates. Just to make sure I understand correctly: since I held the coins for several years (grandfather gave them to me in 2019), I qualify for long-term capital gains treatment, but at the higher 28% collectibles rate rather than the standard 15%/20% rates that apply to stocks? Also, do I need any special documentation beyond the sale receipts? I have the original purchase receipts my grandfather kept, plus all my sale confirmations from the coin dealer. Should I also get some kind of appraisal or valuation documentation for my records? One more question - is there a minimum threshold for reporting these sales, or do I need to report even small gains? The total gain across all coins was only about $620, but I want to make sure I'm doing everything correctly.

Just want to emphasize something important that might not be clear - when you report this on Form 8949, make sure you're using the correct basis calculation. Since these were gifts from your grandfather, you use his original cost basis ($2320 per coin), not the fair market value when you received them. This is different from inherited property where you'd get a "stepped-up basis." With gifts, you inherit the donor's basis along with their holding period, which is why you qualify for long-term treatment even though you personally didn't hold them for over a year before selling. Also, keep all that documentation you mentioned in a safe place - the IRS can audit up to 3 years after filing (6 years if they suspect substantial underreporting), so you'll want those receipts available if questions arise later.