From the August 2 Numismatic News E-Letter
Should the IRS be taxing Precious Metals IRA purchases?
Here are some answers sent in from our E-Newsletter readers.
Yes, tax the IRA bullion at time of purchase then eliminate tax at time of sale like the Roth IRA.
No, there shouldn’t be taxes on coins.
No. It’s already quite difficult to get folks to make sufficient contributions to their retirement plans. Ideally, the government and the IRS should be working very hard to assist savers to do the right thing by not taxing these assets.
A tax on bullion will make it impossible for investors to buy it. It would absolutely end sales.
Name and address withheld
The government should not be taxing bullion, that would include states and local governments.
Taxing numismatic coins and bullion is a bad idea. Margins are already slim and I believe the hobby/industry is on a down turn anyway. We don’t need the government to help put nails in the coffin.
I am answering the question as a collector. We pay sales tax in Ohio. Buying any precious metal that gets taxed by both the state and federal agencies will cause collectors to start buying more gems, diamonds, graded baseball/football cards as investment pieces instead of gold and silver.
Granted, some folks will always buy certain gold and silver coins for their personal collections but money for investment purposes might go to another martket that is more purchase friendly.
I was under the impressison that the only time an IRA is taxed is once an individual either withdrew from the account, or otherwise cashed it in? Is this question redundant?