Not tax advice
Ask a tax professional. This page is general information about publicly available IRS publications and forms. It is not tax advice, and it is not a determination of what you owe.
Federal tax rules depend on what you sold, what you paid, how long you held it, and the year of the sale. State rules are separate. Nothing here replaces the current form instructions or a person who can apply them to your records.
The reviewer assigned to this page checks financial accuracy. That assignment is not a statement that he prepares returns or that he is a tax professional.
A sale of property
The IRS describes gains and losses from selling property in Publication 544, Sales and Other Dispositions of Assets. Investment income, including capital gains, is discussed in Publication 550, Investment Income and Expenses. Both are written for the tax year on the cover of the edition you open. Use the current edition on IRS.gov.
A scrap sale is still a sale: you handed over metal and received money. Whether that sale produces a gain, a loss, or neither is not something a melt calculator can see. Publication 544 is the place the IRS explains dispositions. This page does not restate a rate, a holding-period percentage, or a special rule for collectibles. Publication 550 is where the IRS discusses those topics, and the current text should be read there rather than copied from memory onto a gold website.
Basis
Publication 551, Basis of Assets, explains basis: the measure of your investment in property for tax purposes. For something you bought, basis generally starts from what you paid. Inherited property and gifts are different, and Publication 551 is where those differences are written down.
A wedding ring from 1998, a coin bought last year, and a chain you were given do not share a basis just because they are all gold. The scrap gold calculator estimates today’s melt value. It does not know your basis, and it does not subtract basis from a buyer’s cheque. Keep the papers that show what you paid. If you do not have them, a tax professional is the person who can tell you what the publications allow.
Forms the IRS publishes
Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040), Capital Gains and Losses, are the forms the IRS provides for reporting sales of capital assets. The Instructions for Form 8949 and the Instructions for Schedule D explain which lines apply. Read those instructions for the year of your sale. This page does not pick a line for you.
Some brokers send Form 1099-B, Proceeds From Broker and Barter Exchange Transactions. The Instructions for Form 1099-B explain that form. This page does not restate reporting thresholds, box codes, or who must file a 1099. If you receive a form, or if a buyer says they will file one, use the instructions and a tax professional rather than a summary on a calculator site.
| Document | What it is |
|---|---|
| Publication 544 | Sales and Other Dispositions of Assets |
| Publication 550 | Investment Income and Expenses |
| Publication 551 | Basis of Assets |
| Form 8949 | Sales and Other Dispositions of Capital Assets |
| Schedule D (Form 1040) | Capital Gains and Losses |
Records
Keep the buyer’s receipt: the date, a description of what you sold, the weight, and the amount you were paid. Keep whatever shows your basis, such as a purchase receipt. The forms above ask for facts of that kind. A photograph of a ring is not a basis record. The guide to where to sell scrap gold explains what to write down at the counter so the receipt is usable later.
How long to keep records, and which year’s form to file, are questions for the instructions and for a tax professional. This page does not give a retention period.
What this site does not do
- It does not prepare a return or tell you whether your sale is taxable.
- It does not state a tax rate, a collectibles rate, or a dealer-reporting threshold.
- It does not treat a melt estimate as proceeds or as basis.
- It does not describe the assigned reviewer as a tax professional.
Ask a tax professional. Use the IRS publications and form instructions linked above for the general federal framework, then have a qualified person apply them to your sale.
Questions
Does this page tell me how much tax I owe?
No. It is general information about federal forms and publications. It does not know what you paid, what you sold, or where you live. Ask a tax professional.
Which IRS publication discusses selling property?
Publication 544, Sales and Other Dispositions of Assets, discusses gains and losses from selling property. Publication 550, Investment Income and Expenses, discusses investment income and capital gains. Read the current editions on IRS.gov.
Which forms are used to report a sale of a capital asset?
Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040), Capital Gains and Losses, are the forms the IRS provides for that reporting. Their instructions explain how to use them.
Why does the price I once paid matter?
Publication 551, Basis of Assets, explains basis. A gain or loss depends on basis and on what you received. This website does not have your records and does not compute tax.
Does a melt-value estimate from this site go on a tax return?
No. The calculators estimate metal value. They are not a sale price, a basis, or a tax figure. Use the amount on your buyer’s receipt and the IRS instructions, or ask a tax professional.
Who reviews this page?
Richard Hollis is assigned to review it for financial accuracy. The byline stays off until that review is confirmed. He is not a tax professional, and this page does not describe him as one.
This is a melt-value estimate, not an appraisal or an offer.