Many people have asked us for details on what is required by Brokers to be reported to the I.R.S. We are reproducing below the report issued to Brokers by
I.C.T.A., the Industry Council for Tangle Assets which is the leading industry association relating to government standards and requirements.
The basis of ICTA's negotiations with the IRS on
Broker Reporting was to achieve a fair, reasonable, and consistent minimum threshold for reporting. The resulting Revenue Procedure (Rev. Proc. 92-103) defines "Excepted Sales".
While it may not spell out every specific instance that requires reporting, it is ICTA's understanding and was the spirit of these negotiation that the following are those items to be reported under the new regulation:
Reportable Item |
Minimum Fineness |
Minimum Amount* |
Gold Bars |
.995 |
Any size bars totaling 1 Kilo (32.15 troy
ounce) or more. |
Silver Bars |
.999 |
Any size bars totaling 1000 troy ounces or more. |
Platinum Bars |
.9995 |
Any size bars totaling 25 troy ounces or more. |
| Palladium Bars | .9995 |
Any size bars totaling 100 troy ounces or more.
|
Gold 1
ounce Maple Leaf as minted 25 1-ounce coins. |
Gold 1 ounce Krugerrand as minted 25 1-ounce coins. |
Gold 1 ounce Mexican Onza as minted 25 1-ounce coins |
U.S. 90% Silver Coins as minted, any combination of dimes, quarters, or half-dollars totaling $1,000 or more. |
*For bars, any hallmark regardless of whether that hallmark is accepted as "good delivery" on any of the commodity exchanges.
CAUTION: While a stricter interpretation of the regulation is possible, ICTA believes the above guidelines to be those which fulfill the spirit of the negotiations and the intent of the Internal Revenue Service which is to identify "investment level" or other substantial transactions that could generate taxable profit. Though the information provided herein is based on ICTA's discussions with the Internal Revenue Service, others may differ with ICTA's interpretations of these regulations. ICTA strongly cautions that alternative interpretation may not fulfill the requirements.
This information is provided to assist you and is not intended to be used by you as the sole guidance for complying with these regulations. You should consult with your tax professional. |
