When Precious Metals Sales Get Reported to the IRS
Two separate rules can put a precious metals transaction in front of the IRS. Dealers may have to file Form 1099-B when they buy certain types and quantities of metal from you, and any business that receives more than $10,000 in cash in one transaction or related transactions must file Form 8300. Neither form changes whether you owe tax: a profitable sale is reportable on your return whether or not a dealer files anything.
Two Different Forms for Two Different Purposes
People often blur these together, but they serve different goals.
- Form 1099-B is an information return about a sale. It tells the IRS that you received proceeds, so the agency can match them against your tax return.
- Form 8300 is about cash received by a business. It exists mainly to track large cash movements, not to calculate your gain.
A single trip to a dealer could involve one, both, or neither.
Dealer Reporting When You Sell Metal
Under the IRS instructions for Form 1099-B, a dealer that buys precious metals from the public is treated as a broker for certain sales and must report them. The reporting is not triggered by every sale of gold or silver. It applies to specific forms and minimum quantities of metal, and the covered list has historically been tied to the sizes and types of metal that can be delivered against regulated commodity futures contracts.
In practice, that means a sale of some bars or some bullion coins in large enough quantities may generate a 1099-B, while a sale of the same value in a different product may not. Dealers apply the current IRS instructions to each transaction and may also aggregate related sales made close together. Because the covered list is detailed and can be revised, we do not reproduce it here. Ask the buyer before you sell whether your transaction will be reported, and keep the paperwork either way.
If a dealer does file a 1099-B, you receive a copy. The form shows gross proceeds, not your gain. You still report the sale and your cost basis on your return.
Cash Reporting When You Buy With Currency
The IRS requires any trade or business that receives more than $10,000 in cash in a single transaction, or in related transactions, to file Form 8300. The form must generally be filed within 15 days, and the business must also give the payer a written statement by January 31 of the following year.
For this rule, "cash" means U.S. and foreign currency. Certain monetary instruments such as cashier's checks, bank drafts, traveler's checks and money orders with a face amount of $10,000 or less can also count as cash when they are received in a designated reporting transaction, which includes the retail sale of collectibles, or when the business knows they are being used to avoid reporting. Personal checks and wire transfers drawn on your own account are generally not treated as cash for this purpose.
Note the direction. Form 8300 is filed by the business that receives the cash. If you pay a dealer in currency, the dealer files. If a dealer pays you in currency for your coins, this particular rule is about the dealer's receipts, not its payments.
Splitting Payments Does Not Avoid Reporting
Breaking a cash purchase into smaller pieces specifically to stay under the threshold is called structuring, and it is illegal regardless of whether the underlying purchase is legitimate. The IRS guidance on Form 8300 also states that related transactions are combined. A legitimate dealer will ask for identifying information on a large cash purchase; one that offers to help you avoid filing is showing a serious red flag. Our page on how to verify a precious metals dealer lists other warning signs.
Transactions Inside a Retirement Account
When metal is bought or sold inside a self-directed IRA, the custodian handles the account's reporting. You will generally receive Form 5498, which reports contributions, rollovers and the account's fair market value, and Form 1099-R in any year you take a distribution. A sale of coins inside the IRA is not reported to you as a 1099-B sale, because it is not a taxable event for you at that time.
If you take metal out of the account as an in-kind distribution, the custodian reports its value on Form 1099-R. Goldco says it works with all major self-directed IRA custodians; you can read how that arrangement works in our guide to Goldco storage and custodian partners.
Your Own Reporting Duty
Whether or not any form is filed by someone else, a gain on the sale of physical gold or silver you own directly is generally taxable, and long-term gains on collectibles can be taxed at a maximum federal rate of 28%. See taxes on selling physical gold and silver for how that calculation works. Losses can be reported too, which is another reason to keep proof of what you paid.
What to Keep After Any Sale
- The dealer's sale confirmation showing date, product, quantity and price.
- Any 1099-B or 8300-related statement you receive.
- Your original purchase receipts for the metal you sold.
- Notes on which lots you sold if you bought at different times.
If you are still choosing where to buy or sell, our guide to selling gold and silver compares typical buyers.
Frequently Asked Questions
Does every dealer purchase from me get reported?
No. 1099-B reporting by dealers applies only to certain products and quantities defined in IRS instructions. Many smaller sales are not reported by the dealer, but they are still reportable by you if you have a gain.
Is paying by wire for a large purchase reported on Form 8300?
Generally not, because a wire from your own bank account is not "cash" under the Form 8300 rules. Banks have their own separate reporting obligations.
Will I be told if a dealer files Form 8300 about me?
Yes. The business must generally send you a written statement by January 31 of the following year.
Do IRA metal sales show up on my tax return?
Sales inside the account generally do not. Distributions do, through Form 1099-R.