With the unstable economy the world is in today, one of the best investment steps to take is to buy bullion coins. However, if you purchase without much care, you can end up having problems than solutions. This is because the IRS categorizes some purchases. This is especially true when you purchase large amounts such as those more than $10,000.
The good news for you is that with proper guidance and knowledge, it is possible for you to purchase bullion coins that are non-reportable. Here, take a look at these tips on how you can purchase non-reportable bullion coins:
- Minimize your transactions. Keep in mind that every purchase of bullion coins that is worth $10,000 and more will automatically trigger a report from the IRS. Therefore, the best thing you can do is to buy coins that are worth below $10,000. For instance, if you intend to purchase $27,000 worth of bullion coins, better do it in multiple purchases such as three $9,000 purchases. With this, despite the $27,000 worth of purchase, your purchase will remain unreported to the IRS.
- Use different sources to purchase bullion coins. Do not concentrate in just one dealer in terms of purchasing non-reportable coins. Take into consideration that when you use different dealers, it will follow that you can minimize your purchase in each of them and avoid exceeding the $10,000 threshold. Get purchases from local coin dealers, online shops, and other metal dealers.
- Use personal accounts. If you want the purchase to be non-reportable, use a personal check. This is to automatically consider your transaction as a private purchase. It follows that a private purchase of bullion coins using checks from a personal account cannot be considered as reportable bullion. Therefore, you will be safe from IRS reporting whether it exceeds the $10,000 threshold or not.
- Determine reliability of dealers. Since these investments are high-priced ones, it is important that you only transact with reliable and credible dealers. Therefore, before closing a deal with a dealer, do your own researches first. Ask other investors or check out reviews online. This way, you can see which of all the available dealers can be well trusted in terms of your purchases.
- Consider purchasing the U.S. minted bullion. Coins like the American Eagle gold coins are always considered as non-reportable ones. This is because the American government backs coins like this. Hence, you will be safe when you buy these minted versions of bullion coins.
- Observe quantity of purchase. The price is not everything that is there when speaking of non-reportable and reportable bullion coins. The weight or quantity of the bullion coins has a lot to do with this. For instance, if you purchase around 25 or more pieces of a one ounce coin containing high quality metal, the purchase will be reportable. Therefore, to ensure that your purchase is non-refundable, care to double-check the quantity of your purchases.
There is always a possibility of buying non-reportable bullion coins. However, it can be easy to make mistakes when investing for these coins if you do not know the rules of the market and the IRS. Therefore, before going out to shop for one, better understand first how you can make a non-reportable purchase of either silver or gold bullion coins.