bullion conversion question

[klb99]

bullion conversion

[klb99]

Does anyone know if converting silver bullion to rounds/coins always results in a 1099 (taxable event)from smith to owner???

[humblegunner]

Yes, that is known.

[panaxanax]

Just take them into a coin shop and make a trade. You won’t get full ozt. per ozt. value from your bullion, but it’ll be fairly close.

[mnehring]

Obviously ask your accountant for your specific situation, but I believe it is pretty complicated. There are rules for what types of coins it can be exchanged for (example, an exchange for a Canadian Maple Leaf gold coin is considered a 1031 exchange (tax free) but exchanging for a South African Krugerrand is considered a sale and you are taxed capital gains. (something to do with the gold value in the Canadian Maple Leaf is higher).

[Aliska]

If it's a dealer, it is the dealer's responsibility to generate the 1099 on certain transactions but a trade with a non-dealer, no.

If it is a dealer, be sure you convert just under 1000 ounces and there's no 1099 requirement. Unless it's American Eagles, then there is no requirement.

Hope I got that straight from my gold guru son.

[Aliska]

I forgot to tell you it’s reportable as capital gain on your taxes but even trade, probably not.

[MrEdd]

It smells like cumin.