Form 1099-B for Gold and Precious Metals: Reporting Rules

When you sell gold coins, bars, or other precious metals, the transaction may be reported to the IRS on Form 1099-B. This form is the same one used for stock and bond sales, but for metals it applies only in specific situations. Understanding when a 1099-B is issued—and what to do when it is not—is essential for accurate tax reporting.

This page explains the rules for Form 1099-B as they apply to precious metals. It covers which sales trigger the form, the thresholds that determine reporting, and what to do when a 1099-B arrives with missing cost basis. It also addresses the common misconception that no form means no tax obligation.

When Dealers Must Issue Form 1099-B

Dealers in precious metals are required to file Form 1099-B for certain sales. The obligation depends on the type of metal, the form of the product, and the quantity sold. The rules are set by the IRS and are subject to change; the thresholds listed here are currently.

Gold

Here is the list, and the first thing to know about it is what it is not: it is not a dollar amount, and it does not change from year to year. The reportable items are set by Treasury regulation and tied to commodity-contract specifications, and they have been substantively the same since 1984.

The coins that are not on the list matter more than the ones that are. American Gold Eagles, American Silver Eagles and American Gold Buffalos are not reportable in any quantity. Neither is the Austrian Philharmonic. A dealer who tells you a sale of Eagles will be reported is either mistaken or applying a policy of their own, which they are free to do — but it is not this rule.

Two things follow. First, “reportable” is a property of the specific product, not of the size of the sale, so the same dollar amount can be reportable in one coin and not in another. Second, because the rule points at contract specifications rather than listing every product by name, individual dealers can and do read the edges differently. If it matters to you, ask the dealer what they report before you sell, and get the answer in writing.

What the 1099-B Contains

When a dealer issues Form 1099-B, they report the gross proceeds from the sale—the total amount paid to you. The form typically does not include the cost basis (what you originally paid for the metal). This is because the dealer may not know your basis. The IRS receives a copy of the 1099-B, and you should receive a copy as well.

If you receive a 1099-B, you must report the sale on your tax return, even if you had no gain or a loss. The IRS will match the proceeds reported on the form with your return. If you do not report the sale, you may receive a notice.

No Form Does Not Mean No Obligation

A common misunderstanding is that if no 1099-B is issued, the sale is not taxable. This is incorrect. The IRS requires taxpayers to report all income, including capital gains from the sale of precious metals, regardless of whether a 1099-B was issued. The absence of a form simply means the dealer did not have a reporting obligation; it does not relieve you of your duty to report the transaction.

For example, if you sell 10 ounces of gold bullion, the dealer may not issue a 1099-B because the sale is below the threshold. However, you are still required to report the sale on your tax return and pay any applicable capital gains tax.

Cost Basis and Capital Gains

To calculate your gain or loss, you need your cost basis—the original purchase price plus any allowable costs. If you do not have records, you may have to reconstruct your basis from purchase receipts, account statements, or other documentation. The IRS may challenge a basis that seems unreasonable.

For tax purposes, precious metals are treated as collectibles. Gains on collectibles are taxed at a maximum rate of 28%, which is set by statute and can change. Short-term gains (held one year or less) are taxed at ordinary income rates, which may be higher. Long-term gains (held more than one year) are subject to the collectibles rate, but only up to the maximum; if your ordinary rate is lower, that lower rate applies.

What People Get Wrong

The most common error is assuming that a 1099-B is the trigger for tax liability. In reality, the tax code imposes the obligation to report gains on all sales, regardless of whether a form is issued. The 1099-B is simply an information return that helps the IRS track transactions. Another frequent mistake is ignoring a 1099-B that shows proceeds but no basis, thinking it is not your responsibility. You must report the sale and determine your basis yourself.

It is also a misconception that the 28% collectibles rate applies to all gains. The rate is a maximum; if your ordinary income tax rate is lower, you pay the lower rate. Additionally, the thresholds for 1099-B reporting are often confused with the thresholds for taxability. They are unrelated.

State Sales Tax

Sales tax on precious metals is determined by each state, and exemptions vary by state and can change with legislative sessions. Some states exempt bullion and coins from sales tax, while others do not. Check your state’s current rules to understand any sales tax obligations. This page does not cover state-specific rules.

Reporting to the IRS

When you file your tax return, report the sale of precious metals on Schedule D (Form 1040), Capital Gains and Losses. If you receive a 1099-B, the proceeds will be reported on that form, and you must reconcile it with your records. If you do not receive a 1099-B, you still report the sale using the actual proceeds.

If you have questions about your specific situation, consult a qualified tax professional, such as a CPA or enrolled agent. They can help you determine your basis, calculate your gain, and ensure you meet all reporting requirements.

Reporting the sale whether or not a 1099-B arrives

Form 1099-B is issued for certain precious metals sales that meet specific thresholds. Even if no form is issued, you are still required to report all sales and pay any tax due. Understanding the thresholds and your reporting obligations is essential for compliance. For personalized advice, seek the guidance of a tax professional.