If you have been investing in gold or silver coins for years, you may be curious about what happens when it comes time to sell. There is no getting around the fact that selling bullion or coins will result in taxation, and more specifically, capital gains tax. So, if you are wondering how to sell gold coins without paying taxes of any kind, you might be a bit disappointed. However, there are certainly ways that you can help to reduce the amount of tax you pay.
At Green Moolaa, we are the gold buyer Brampton residents turn to when looking to sell their gold for the best possible price. We know that you are looking to hold on to as much of the money from the sale as possible, and we will walk you through the selling process to ensure you feel comfortable and informed. In this post, we discuss one of your most-asked questions, how to sell gold without paying taxes in Canada.
Always keep in mind that you need to be aware of your tax obligations. Speaking with an accountant may be your best bet for understanding the tax implications of selling your gold or silver bullion.
How to Sell Gold and Silver Tax-Free
When it comes to buying gold or silver coins, you are not required to pay GST/HST and this can lead some investors to assume that selling gold or silver is also exempt from taxes. However, this simply is not the case. Like other investments, you will be subject to pay capital gains tax when you sell your gold or silver bullion or coins.
Capital gains taxes can sound intimidating to those who are looking to sell their gold or silver. Yet it is important to note that you are not taxed on the entirety of your profit and instead only an inclusion rate. Currently, the inclusion rate, or the amount subject to taxation, for capital gains is 50% for the first $250,000 and then 66.67% for portions that exceed $250,000.
When it comes to knowing how much you will be required to pay in capital gains, you will need to work with an accountant, as factors such as your personal income and other deductions may influence your tax amounts. If you are looking to learn how to sell gold and silver tax-free, you generally will not be able to do so. Only your accountant can guide you in making decisions to help reduce your tax burden.
Can a Gold Loan Be a Better Option than Selling?
If you were looking into how to sell gold without paying taxes so that you may use money earned for urgent purchases, a loan against gold could be an alternative option. Loans against gold can help you to get the money you need without having to sell your gold. Contact the experts at Green Moolaa to learn more about how we can help you get the cash you need in a way that makes sense for your lifestyle.
