Under federal tax laws, precious metals dealers are required to report certain sales made by their customers. As an investor, you should note that capital gains are taxed at a different, much lower rate than earned income. This is known as capital gains tax. And since gold is a fixed asset, it is taxed as a capital gain when you sell your gold and make a profit.
However, depending on how you held your gold, you’ll either have to pay taxes at the normal capital gains rate or at a general rate of 28%. According to this law, customers selling gold and silver items to a gold buyer must provide customer identification as part of the transaction. Don’t finance your precious metal IRA with a fraction of gold or silver, they too are unnecessarily expensive. These objects include fractional gold coins, American Eagle gold or silver coins, all pieces of foreign currency not specifically mentioned in the IRS list of reportable items, and US currency pieces created
after the list was created in the 1980s. If you want to sell gold and silver items to a gold buyer, you must provide either an original photo ID or two original forms of a text-based ID with your proof of address.