Sales tax expense on gold

Discussion of the Gold portion of the Permanent Portfolio

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thisisallen
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Sales tax expense on gold

Post by thisisallen » Tue Dec 08, 2020 7:03 pm

Usually the discussion of physical vs ETF includes the premium of the physical. But there is hardly any discussion about the sales tax paid for physical gold. That expense is on top of the cost of the physical plus the premium. It could raise that entire cost by 5-10%, can’t it? Why is that expense not brought out as another advantage for the people choosing to buy an ETF rather than physical?
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vnatale
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Re: Sales tax expense on gold

Post by vnatale » Tue Dec 08, 2020 7:09 pm

thisisallen wrote:
Tue Dec 08, 2020 7:03 pm
Usually the discussion of physical vs ETF includes the premium of the physical. But there is hardly any discussion about the sales tax paid for physical gold. That expense is on top of the cost of the physical plus the premium. It could raise that entire cost by 5-10%, can’t it? Why is that expense not brought out as another advantage for the people choosing to buy an ETF rather than physical?
It could. It all depends upon both the sales tax laws where you buy the gold and where you live (if two different states). Are there even different sales tax laws on purchasing gold within the same state?

Vinny
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Mark Leavy
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Re: Sales tax expense on gold

Post by Mark Leavy » Tue Dec 08, 2020 7:23 pm

I can’t fathom ever paying sales tax on gold in the US.
Why would anyone do that?
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Kriegsspiel
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Re: Sales tax expense on gold

Post by Kriegsspiel » Tue Dec 08, 2020 8:11 pm

I was not charged sales tax on any gold I've bought.
You there, Ephialtes. May you live forever.
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Re: Sales tax expense on gold

Post by SomeDude » Tue Dec 08, 2020 8:17 pm

Mark Leavy wrote:
Tue Dec 08, 2020 7:23 pm
I can’t fathom ever paying sales tax on gold in the US.
Why would anyone do that?
I'm in FL. Per the law here, no sales tax if metals are purchased online, or in person if they're US mint products or the total bullion value is over $500. I've bought 6 figures worth of bars and coins and never paid a penny of sales tax.
Last edited by SomeDude on Wed Dec 09, 2020 1:15 am, edited 1 time in total.
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vnatale
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Re: Sales tax expense on gold

Post by vnatale » Tue Dec 08, 2020 8:51 pm

https://www.jmbullion.com/tax/

Gold & Silver Bullion / Collectible State Sales Taxes

Rules and Regulations by State

Click on your state in the image map below:
Capture.JPG
Capture.JPG (50.42 KiB) Viewed 3207 times
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Mark Leavy
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Re: Sales tax expense on gold

Post by Mark Leavy » Tue Dec 08, 2020 8:59 pm

Is there any state that charges sales tax on American Eagles? That sounds improbable since Eagles are US currency.
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Re: Sales tax expense on gold

Post by SomeDude » Wed Dec 09, 2020 1:18 am

Mark Leavy wrote:
Tue Dec 08, 2020 8:59 pm
Is there any state that charges sales tax on American Eagles? That sounds improbable since Eagles are US currency.
I realized i put $5000 in my post. I meant $500. $500 of bullion of any kind in person in FL and no sales tax.

Regarding eagles, I'm 99% it's against federal law for states to charge sales tax on the sale of legal US tender.
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europeanwizard
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Re: Sales tax expense on gold

Post by europeanwizard » Wed Dec 09, 2020 2:02 am

In my European country, you also don't pay VAT on gold.
thisisallen
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Re: Sales tax expense on gold

Post by thisisallen » Wed Dec 09, 2020 12:01 pm

The high tax state of NJ charges sales tax on everything.
“ The State of New Jersey requires JM Bullion to collect sales taxes on all products sold by JM Bullion and delivered to a New Jersey address.”

Sounds like the key is “delivered to a NJ address.” May be good to find a mailing address in another state!
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Re: Sales tax expense on gold

Post by mathjak107 » Wed Dec 09, 2020 12:20 pm

Back in the 1980’s I took delivery of gold coins from fidelity ..I got charged hundred in sales tax .

Nyc has done away with the tax on the coins
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Re: Sales tax expense on gold

Post by pp4me » Wed Dec 09, 2020 3:37 pm

SomeDude wrote:
Tue Dec 08, 2020 8:17 pm
Mark Leavy wrote:
Tue Dec 08, 2020 7:23 pm
I can’t fathom ever paying sales tax on gold in the US.
Why would anyone do that?
I'm in FL. Per the law here, no sales tax if metals are purchased online, or in person if they're US mint products or the total bullion value is over $500. I've bought 6 figures worth of bars and coins and never paid a penny of sales tax.
I've never paid a penny in FL either. I bought about half of my coins from a local dealer and I don't recall the subject of sales tax ever coming up.
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Re: Sales tax expense on gold

Post by SomeDude » Thu Dec 10, 2020 10:33 am

pp4me wrote:
Wed Dec 09, 2020 3:37 pm
SomeDude wrote:
Tue Dec 08, 2020 8:17 pm
Mark Leavy wrote:
Tue Dec 08, 2020 7:23 pm
I can’t fathom ever paying sales tax on gold in the US.
Why would anyone do that?
I'm in FL. Per the law here, no sales tax if metals are purchased online, or in person if they're US mint products or the total bullion value is over $500. I've bought 6 figures worth of bars and coins and never paid a penny of sales tax.
I've never paid a penny in FL either. I bought about half of my coins from a local dealer and I don't recall the subject of sales tax ever coming up.
They will charge if you buy less than $500 AND you're buying foreign coins or generic.
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