Is it legal to store physical gold at home in the US? If so, what taxes may be applied on the gold held at home, in form of both jewelry or raw gold?
1I don't get this question. You are buying the gold with money that presumably you earned and have paid taxes on. So why would you pay taxes on the gold you possess? Until such time as you sell it and made appreciated value earnings on it at which time you would pay taxes on that earning. What am I missing here?– GµårÐïåñ2 days ago
@GµårÐïåñ: Since gold is considered a collectible, it is taxed at maximum rate of 28% like art, stamps, and antiques rather than traditional investments like stocks or bonds. The IRS charges higher tax rates on collectibles than other investments, which usually average 15% to 20% if held for more than a year.– best_of_man2 days ago
@GµårÐïåñ: I saw this by chance on the internet and wanted to make sure is that true? If so, how does it work?– best_of_man2 days ago
People have bought gold or precious metals in general forever as a hedge against inflation, world war, financial collapse, end of the world, whatever you want to call it, and I don't recall anyone buying coin, bullion, or ingots and paying anything on it. But I don't know everything so I suppose it is possible but all the people I know would be in jail for tax dodge if that's the case. See littleadv's answer.– GµårÐïåñ2 days ago
2@GµårÐïåñ there actually was a relatively long period in the US history that possessing gold at home was illegal, see my link to the wikipedia article about EO6102. It was issued in 1933 and was only repealed in 1974. So similarly to "muscle memory" of using gold as inflation hedge (it's not anymore), people may have "muscle memory" of "keeping gold at home is illegal".– littleadv2 days ago
The executive order 6102 has been repealed and there's no prohibition on owning and possessing gold in the US. Taxes are paid on income, and gold bullions, coins, and bars are treated as collectibles for income tax purposes. Gain on sale of collectibles is taxed at fixed 28% rate (IRC Section 1(h)(4)). See the IRC Section 408(m) for the full definition of a collectible (the exception (3) only applies to Sec. 408 about IRA investment limitations, not Sec. 1 for tax rates).
You only pay the tax on gain when you sell the collectible, you don't pay any tax for just owning it.