How do I report selling scrap gold without receiving a 1099-B or brokerage statement?

You'll need to create your own record since you don't have formal documentation. The IRS requires you to report all income, including from scrap gold sales. Create a simple statement with the following: total amount you received for the gold, your cost basis (what you paid for the jewelry plus any expenses directly related to acquiring it), and the resulting profit. Label it as "Scrap Gold Sales Summary" with the tax year. Since your profit is under the $1,200 you mentioned, it's considered a capital gain. In FreeTaxUSA, you can enter this information manually in the Capital Gains section. When it asks for a 1099-B, select that you didn't receive one and enter your information as a summary.

I went through almost the exact same situation last year with scrap metal sales! I was so stressed trying to track everything manually until I found this AI tax document analyzer called taxr.ai that saved me hours of frustration. I uploaded my bank statements (since I had deposited the cash) and some photos of my handwritten notes, and it organized everything into proper tax categories. The site https://taxr.ai actually helped me create a proper summary statement for my scrap metal sales that satisfied the IRS requirements. It identified which transactions were likely related to my scrapping activities based on patterns and amounts. The best part was that it formatted everything correctly for tax purposes, so I didn't have to guess what information needed to be included.

Just wanted to follow up - I decided to try taxr.ai after my skeptical comment and I'm honestly impressed. I had a shoebox of receipts and some notes from my vintage buying/selling side hustle that I've been avoiding dealing with. The system helped me organize everything into a proper tax format and even identified some deductions I was missing. I uploaded photos of my receipts and handwritten sales log, and it created a professional-looking summary statement that worked perfectly with FreeTaxUSA. The document it generated for my scrap metal and vintage item sales looked exactly like what the IRS wants. Now I'm actually looking forward to next year's taxes because I have a system that works!

If you're still struggling with the IRS questions about your scrap gold sales, I've been there too. What made things worse was trying to call the IRS for guidance - I wasted DAYS on hold and never got through to anyone who could help. Then I found this service called Claimyr at https://claimyr.com that got me through to an actual IRS agent in less than 20 minutes! They have this system where they navigate the IRS phone tree for you and call you back when they've got an agent on the line. I was super skeptical at first, but you can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with explained exactly how to report my cash sales from collectibles and scrap metal. Turns out there's a specific way to document these transactions even without formal paperwork, and the agent walked me through the whole process.

I need to publicly eat my words about Claimyr. After posting my skeptical comment, I decided to give it a shot since nothing else was working. I had been trying for WEEKS to get clarification on reporting my eBay sales of collectibles and scrap metal. Used the service yesterday and got through to an IRS agent in 22 minutes. The agent confirmed I could create my own summary statement for cash transactions from scrap gold and coin sales, and explained exactly what needed to be included. They also told me I should keep better records going forward (obviously), but gave me the exact format to use for reporting this year's transactions. If you're stuck with questions about reporting cash sales like this, getting actual IRS guidance is worth it. I was 100% wrong in my skeptical comment, and I'm glad I tried it anyway.

For scrap gold sales specifically, you should report it on Schedule D as a capital asset. Since you held it for investment purposes (buying low, selling high), that's the appropriate place. Make sure to classify it as a "collectible" which has a different tax rate than regular capital gains. Gold is taxed at a maximum of 28% rather than the normal capital gains rates. Even though your profit is small, the classification matters for accuracy.

Quick tip from someone who's been buying/selling gold for years: start keeping a simple log NOW for next year. Just a notebook with columns for: - Date purchased - What you bought - Purchase price - Date sold - Sale price - Profit/loss Would have saved me so much headache when I first started. For this year, estimate as best you can and create that summary sheet others mentioned. IRS mainly wants to see you're making a good faith effort to report accurately.

I've been in a similar situation with precious metals transactions! One thing that helped me was checking if my bank statements showed any patterns that could help reconstruct the timeline. Even though you dealt in cash, if you deposited the proceeds or withdrew cash for purchases, those bank records can help establish approximate dates and amounts. Also, don't stress too much about having perfect records for this year - the IRS understands that casual sellers often don't have formal documentation. The key is showing good faith effort to report accurately. Create that summary statement with your best estimates of total costs and sales, and definitely implement a better record-keeping system going forward. For FreeTaxUSA, when you get to the investment sales section, look for an option that says something like "Enter sales not reported on Form 1099-B" or "Add transaction manually." You'll enter your scrap gold as a single summary transaction with your total cost basis and total proceeds.

I'm dealing with something very similar right now! I've been buying vintage jewelry at garage sales and selling the gold content to my local coin dealer. Like you, I didn't get any formal paperwork and mostly dealt in cash. What I ended up doing was creating a simple spreadsheet with my best estimates of what I spent versus what I earned throughout the year. I called it "Scrap Gold Sales Summary 2024" and included columns for approximate purchase costs, sale amounts, and net profit. The key thing I learned is that you don't need perfect documentation - the IRS just wants to see that you're making a reasonable effort to report your income accurately. Since your profit was under $1,200, you're dealing with relatively small amounts that won't trigger major scrutiny as long as you report something reasonable. For FreeTaxUSA, look for the section where it asks about capital gains and losses. There should be an option to manually enter transactions that weren't reported on a 1099-B. That's where you'll input your scrap gold summary as a single transaction with your total cost basis and total proceeds. Don't stress too much about this year - just do your best with the information you have and definitely start keeping better records going forward!

I'm a tax preparer and see this situation frequently with people who buy and sell at estate sales, flea markets, etc. You're absolutely on the right track with creating your own summary statement. Here's what you need to include in your "Scrap Gold Sales Summary 2024": - Total amount spent purchasing jewelry at estate sales (your cost basis) - Total amount received from selling to the coin shop - Net profit/loss - Statement that these were cash transactions without formal documentation In FreeTaxUSA, go to the Federal section, then Income, then "Less Common Income" and look for "Capital Gains and Losses." When it asks about Form 1099-B, select "I need to enter sales that are not on a 1099-B." You can then manually enter your summary as a single transaction. Since gold is considered a collectible, make sure to select that option when prompted about the type of asset - this ensures proper tax treatment (max 28% rate vs regular capital gains rates). The IRS is reasonable about casual sellers who deal in cash. Your good faith effort to estimate and report the income is what matters most. Just implement better record-keeping going forward!

As someone who's been through a similar situation with scrap metal and electronics sales, I can tell you that creating your own summary statement is definitely the way to go. The IRS completely understands that small-scale cash transactions don't always come with formal paperwork. I'd recommend creating a simple document titled "Scrap Gold Sales Summary - Tax Year 2024" that includes: - Total estimated amount spent on jewelry purchases at estate sales - Total amount received from coin shop sales - Your net profit (which you mentioned was under $1,200) - A note explaining these were cash transactions without formal documentation The key thing is being consistent with your estimates and showing good faith effort. Since you mentioned splitting profits with someone, make sure you're only reporting your portion of the income. For future reference, I started using a simple phone app to track my buying/selling activities right after transactions. Even just a quick photo of items purchased with a note about cost has saved me tons of headaches come tax time. But for this year, your summary approach should work perfectly fine with the IRS.

I've been in a very similar situation with estate sale finds! Based on all the great advice here, I want to emphasize that you really don't need to stress about this. The IRS gets that casual sellers like us often deal in cash without formal paperwork. Here's what worked for me when I had the same issue: I created a simple one-page document called "Estate Sale Gold Sales Summary - 2024" with just the basics - total spent on purchases (my cost basis), total received from sales, and net profit. I added a note that these were cash transactions without receipts. The most important thing everyone's mentioned is using the manual entry option in FreeTaxUSA. When you get to the capital gains section and it asks about 1099-B forms, look for "Enter transactions not reported on 1099-B" or similar wording. That's your gateway to entering everything as one summary transaction. Don't forget the collectible classification for the gold - it affects your tax rate. And since you mentioned splitting profits, make sure you're only reporting your share of the income. You're being way more thorough than most people in your situation would be, so give yourself credit for that! The IRS values good faith effort over perfect documentation, especially for small amounts like yours.

I've been following this thread as someone who deals with similar tax situations for small business clients. Just wanted to add a few practical points that might help: 1. For your summary statement, include a brief explanation of your business activity - something like "Purchased jewelry at estate sales for scrap gold content, sold to local coin dealer for cash." This context helps the IRS understand the nature of your transactions. 2. Since you mentioned your profit was under $1,200 after splitting, you're dealing with a relatively small amount that's unlikely to trigger additional scrutiny. The IRS is primarily concerned that you're reporting the income, not that you have bank-level documentation. 3. One thing I tell clients: if you have any photos of the jewelry pieces you bought or any text messages about sales, keep those as backup documentation. Even informal records can support your estimates if questions ever arise. 4. Going forward, consider opening a separate checking account for your estate sale activities. Even if you're dealing in cash, depositing proceeds and tracking expenses through a dedicated account creates an automatic paper trail. The consensus here is spot-on - create your summary, use the manual entry option in FreeTaxUSA, classify it as collectibles, and don't stress about perfect precision. You're being more diligent than most people in similar situations!

I've been doing estate sale jewelry hunting for about three years now, and I went through this exact same confusion my first tax season! Here's what I wish someone had told me from the start: The IRS actually has guidance specifically for "casual sellers" like us who deal in collectibles and precious metals without formal brokerage relationships. You're absolutely doing the right thing by trying to report this income - many people in our situation just ignore it completely, which is definitely not the way to go. For your immediate situation, create a simple summary document titled something like "Scrap Gold Sales Activity - 2024" that includes: - Brief description of activity (buying jewelry at estate sales, selling gold content for scrap) - Your total estimated costs (what you paid for jewelry plus any direct expenses) - Your total proceeds from the coin shop - Your net profit (your portion after splitting) - Note that transactions were conducted in cash without formal documentation The beauty of FreeTaxUSA is that it's designed for exactly these situations. When you hit that investment sales section, look for "Enter sales not on Form 1099-B" - that's your gateway to manual entry. Enter your entire year's activity as one summary transaction. One tip that saved me: if you have any old calendar entries, photos, or even social media posts about your estate sale visits, those can help you estimate timeframes and validate your activity level. I found I had way more documentation than I initially thought once I started looking through my phone and calendar. Don't let this discourage you from continuing this hobby/side income - just implement a simple tracking system going forward. I use a small notebook that stays in my car, and I jot down purchases immediately after each estate sale. Makes tax time infinitely easier!