When the gold is sold to the purchaser, an amount of income will be generated.
Is the cash from selling gold subject to tax?
The relationship between gold purchase and taxation will be introduced to you here!
Whenever a sale is established, there is a tax
The tax calculation of personal income from gold sales (called personal temporary trade income) is as follows:
“For-profit enterprises purchase goods from other profit-making enterprises as the normal state, and they should obtain unified invoices or dispense with the ordinary receipts of the unified invoice industry. As for general personal purchases, it is an exception. You should obtain a receipt issued by the individual and enter the account, and report the personal temporary trade information declaration to the IRS.”
“The calculation of income is based on the provisions of the Income Tax Law on calculating the income of profit-making enterprises. At present, the temporary trade income is calculated at 6% of the sales income and incorporated into the comprehensive income tax declaration of profit income.”
Here are the frequently asked questions about gold trading:
• Do I need to file taxes for selling gold?
Every transaction needs to be reported to the IRS.
• How much tax do I have to pay?
The amount of tax to be paid is related to the individual’s annual income and the method of declaration, and cannot be unified. What we can ascertain is: the number you get after the amount you sold multiply by 6% will be incorporated into your income.
• What would happen if I didn’t file my taxes?
Everyone is in a different situation, so you can get a comprehensive answer if you ask the IRS. It is recommended that you still declare honestly!
• Doesn’t gold have tax allowances that can be declared?
Regardless of whether it is gold or not, and regardless of the amount of sale, each sale amount must be declared.
• Why is this not in my income list?
This part is related to the operating mechanism of the IRS. It is still recommended that you take the initiative to declare with the receipt when you file your tax return in May.
• Why is there a profit from you in my income list?
“Temporary trade income” belongs to personal profit income in the income classification of the IRS!
• I accidentally lost the “Temporary Trade Information Declaration Form” receipt, what should I do?
Please contact the store you sold at that time and leave your full name and contact information, we will contact you after confirmation.