Do private sellers need to issue Form 1099-B or 1099-S when selling gold or silver?
Executive summary
Private individuals who sell gold or silver to another private party generally are not the parties required to issue Form 1099-B or Form 1099‑S; the IRS and industry guidance focus reporting obligations on brokers, dealers and other purchasers who act in a trade capacity and on specific precious‑metal items and quantities that trigger dealer reporting (1099‑B) rather than on Form 1099‑S, which covers real estate transactions [1] [2]. Industry sources confirm dealers must file 1099‑B for “reportable” bullion or coin sales that meet IRS/CFTC‑defined product and quantity thresholds and that there remains some ambiguity about exactly which modern coins are reportable in practice [3] [4] [5].
1. Who the rules actually bind: dealers/brokers, not casual private sellers
The IRS instructions for Form 1099‑B frame the obligation around brokers and similar intermediaries — not ordinary private sellers — requiring filing when the broker has effected sales of commodities or certain precious metals that are deliverable under CFTC‑approved regulated futures contracts, subject to minimum contract sizes and product specifications [1]. Multiple bullion dealers and industry guides restate that the government requires bullion dealers and brokers to file 1099‑B for reportable bullion purchases and sales, emphasizing the filing duty lies with the dealer/broker purchasing the metals from a customer [3] [6] [7].
2. What items and quantities actually trigger a 1099‑B
The set of reportable items is narrow and tied to CFTC contract specifications: for example, kilo gold bars of .995 fineness (1 kg ≈ 32.15 troy oz) and similarly large silver bars or specified coin quantities are commonly cited thresholds used by dealers when deciding to issue a 1099‑B [3] [4]. The IRS instructions explain that a sale of a precious metal that the CFTC has not approved for trading by a regulated futures contract is not reportable, and even CFTC‑approved forms are only reportable when the quantity meets the minimum required contract size — so a single coin often falls below reportable thresholds [1].
3. Coins, exceptions and confusing carve‑outs
The list of coins treated as deliverable under CFTC contracts is limited and historically includes items like Krugerrands, Canadian Maple Leafs and certain pre‑1965 U.S. silver coins, but many modern bullion coins (e.g., American Eagles) have been excluded from reportable lists in guidance and industry commentary [8] [9]. Industry commentators and some dealers warn that there remains disagreement about whether particular coins or brands are reportable, and some dealers cite divergent interpretations — meaning a customer selling to a dealer may or may not trigger a 1099‑B depending on the dealer’s reading of IRS/CFTC rules [10] [5].
4. Form 1099‑S is not the vehicle for bullion — it’s for real estate
Form 1099‑S is the IRS form for proceeds from real estate and estate transactions and is not the standard form for precious metal sales; IRS and annotated guidance point to Form 1099‑B (and in some circumstances Form 8300 for large cash payments) as the applicable reporting tools for bullion transactions rather than Form 1099‑S [2] [6] [4].
5. Practical effect for a private seller and remaining uncertainties
In practice, a private person selling a modest quantity of gold or silver to another individual is unlikely to be required to issue Form 1099‑B or 1099‑S themselves; instead, if a dealer or broker purchases “reportable” bullion in reportable quantities they are the party that must file the 1099‑B and collect identifying information [3] [7]. That said, reporting rules are item‑specific and quantity‑specific, dealers exercise judgment, and the industry still records disagreements about applicability for certain coins and products — sources do not provide a universal checklist that eliminates all doubt for every coin or bar, so consultation with a tax professional or review of current IRS/CFTC lists is prudent for high‑value transactions [5] [1].