Gold Purchase Records: What to Keep for Taxes

When bullion is sold at a gain, the tax bill is calculated on the difference between what the metal was bought for and what it was sold for. That difference is the capital gain, and the purchase price is the cost basis. The receipt is the document that establishes that basis years later. Without it, the basis may be assumed to be zero, and the entire sale proceeds could be treated as gain. This page explains which records to keep, how long to keep them, and what options exist when a receipt is missing.

What to Keep

For every purchase of gold bullion or coins, the following records should be retained:

• The original receipt or invoice from the dealer, showing the date of purchase, the item description, the weight and purity, and the price paid.
• The payment method confirmation, such as a bank transfer record, credit card statement, or cancelled check.
• Any certificate of authenticity or assay card that accompanies the metal.
• If the metal was acquired by inheritance or gift, the date of the original purchase and its fair market value at the time of acquisition, as well as any estate tax valuation.

These records establish the cost basis and the holding period, which determines whether the gain is short-term or long-term. The holding period starts on the date of purchase and ends on the date of sale.

How Long to Keep Records

The IRS generally has three years from the filing date to audit a return, but that period extends to six years if the taxpayer underreported gross income by more than 25%. For capital assets, the record retention period should be at least as long as the period of limitation for the tax return in which the sale is reported, plus the time needed to resolve any disputes. A common practice is to keep records for at least seven years after the sale is reported, and many tax professionals recommend keeping them indefinitely, especially for precious metals that may be held for decades.

What If the Receipt Is Lost?

If the original receipt is lost, several steps can be taken to reconstruct the basis:

• Contact the dealer to request a duplicate receipt or a transaction history. Many dealers maintain records for several years.
• Check bank or credit card statements for the purchase amount and date.
• Obtain a professional appraisal. An appraisal can establish the fair market value of the metal at a given date, but it does not replace a receipt for proving the original cost. The IRS may accept a contemporaneous appraisal if it is supported by other evidence, but the burden of proof is on the taxpayer.
• If no documentation exists, the IRS may treat the basis as zero, meaning the entire sale proceeds are taxable as a gain. This is the worst-case scenario and highlights the importance of keeping records.

What the Dealer Reports vs. What the Taxpayer Reports

It is common to confuse the reporting obligations of the dealer with those of the taxpayer. A dealer is required to file Form 1099-B with the IRS for certain sales of bullion and coins, but only if the sale meets specific thresholds. For the 2026 tax year, the threshold for reporting is $10,000 in a single transaction or a series of related transactions. This threshold is set by statute and can change; the IRS publishes updates each year. The dealer also provides a copy of the 1099-B to the seller.

However, the dealer’s filing does not relieve the taxpayer of the obligation to report the sale on their own tax return. The taxpayer must report the gain or loss on Schedule D of Form 1040, regardless of whether a 1099-B was issued. The 1099-B is informational; it does not compute the gain or loss, and it does not determine the tax liability. The taxpayer is responsible for calculating the gain using their own records.

Common Misunderstandings

Assumption: Holding for more than one year makes the gain tax-free.

This is a natural assumption because long-term capital gains rates are lower than short-term rates for most assets. However, for collectibles, including gold bullion and coins, the maximum long-term capital gains rate is higher than the general rate. For the 2026 tax year, the collectibles maximum is 28%, set by statute, and it has moved before. Holding for more than one year does not make the gain tax-free; it only determines whether the gain is taxed at the collectibles rate or at the ordinary income rate, which for short-term gains can be as high as 37% for the 2026 tax year. The gain is always taxable unless the metal is held in a tax-advantaged account.

Assumption: If the dealer doesn’t report the sale, the taxpayer doesn’t have to.

This is false. The taxpayer’s reporting obligation is independent of the dealer’s. Even if no 1099-B is issued, the taxpayer must report the sale. The IRS can use other information, such as bank deposits, to identify unreported gains.

Assumption: An appraisal is as good as a receipt.

An appraisal can help establish fair market value at a given date, but it does not prove the original purchase price. The IRS generally requires contemporaneous documentation of the cost. An appraisal may be used to support a reconstructed basis, but it is not a substitute for a receipt.

Cost basis with and without a receipt

State Sales Tax Considerations

Sales tax on the purchase of gold bullion is set by each state, and exemptions vary by state and by legislative session. Some states exempt bullion from sales tax, while others do not. The sales tax paid at purchase is not part of the cost basis for capital gains purposes; it is a separate expense. For information on sales tax in a specific state, consult that state’s department of revenue or a tax professional.

Which records to keep for gold purchases

Keeping accurate gold purchase records is essential for determining the cost basis and calculating the correct tax on a sale. The receipt is the primary evidence of cost, and without it, the taxpayer may face a higher tax bill. While the dealer may have reporting obligations, the taxpayer’s responsibility to report gains is separate and absolute. For any specific tax situation, consult a CPA or tax professional.

This page provides general information and does not constitute tax advice. Tax laws change, and individual circumstances vary. Consult a qualified tax professional for advice on your specific situation.