Authored by Adam H. Douglas via The Epoch Times,
If you bought gold during its 2023-2026 rally, you may be sitting on a large profit and a tax rule you have never heard of.
Gold’s tax treatment can surprise investors, especially when selling after a major rally. Nattapon Saisaard/shutterstockThe IRS classifies physical gold, and even the popular bullion-backed gold exchange-traded funds (ETFs), as collectibles, a category shared with art, stamps, and antiques. That classification changes the tax bill when you sell. Most holders discover it at the worst possible moment: after the sale, when nothing can be done.
Here is the rule to understand before you sign anything.
Quick Answer: How Is Gold Taxed When You Sell?
Long-term gains on physical gold and bullion-backed ETFs are taxed as collectibles: at your ordinary income tax rate, capped at a maximum of 28 percent. That cap is the part many investors misunderstand and what a lot of media coverage gets wrong. If you are in the 12 percent bracket, you pay 12 percent, not 28
