How does Form 1099‑B apply to precious metals sales and which coins are exempt?
Executive summary
Form 1099‑B is the IRS “Proceeds From Broker and Barter Exchange Transactions” return dealers must file when they purchase or broker sales of certain precious metals that meet the IRS’s reportable-item list and quantity thresholds; however many common investment coins are explicitly excepted from 1099‑B reporting and even when a 1099‑B is not issued taxpayers remain liable for capital gains tax [1] [2] [3]. The line between reportable and exempt hinges on CFTC deliverability, the metal’s form and purity, and set quantity thresholds [2] [4].
1. How Form 1099‑B gets dragged into bullion transactions — the legal mechanics
Form 1099‑B is used by brokers and dealers to report proceeds when they buy or sell securities and certain commodities; the IRS’s instructions explicitly bring some precious‑metals sales into 1099‑B territory but carve exceptions where CFTC regulated futures contracts (RFCs) do not allow physical delivery or where the sale is below minimum deliverable quantities [1] [2]. In practice, dealers follow the IRS reportable‑items list and related Commodity Futures Trading Commission standards to decide whether a customer sale triggers a 1099‑B filing [2] [5].
2. The CFTC‑deliverability test — the decisive technical filter
Whether a metal is “reportable” often comes down to whether that exact form and quantity can satisfy a CFTC‑approved regulated futures contract; if a coin or bar cannot be delivered against an RFC, it’s an “excepted sale” and not reportable, and even deliverable forms become non‑reportable if the sale is under the RFC’s minimum quantity (example: a single gold coin that would require delivery of 25 coins under a contract) [2] [4].
3. Practical thresholds dealers use — purity, weight and counts
Industry and dealer guides show common thresholds: for bars/rounds, high purity minimums (for gold bars typically .995 fineness) and kilogram‑level aggregate weights (1 kilo or ~32.15 troy oz.) are common report triggers; for other metals the thresholds vary (e.g., silver bars often require much larger aggregate weights) — these practical rules reflect IRS guidance and longstanding industry conventions negotiated via trade groups [6] [5] [3].
4. Which coins are routinely exempt from 1099‑B reporting
Several widely held investment coins are generally exempt from 1099‑B: U.S. Gold and Silver American Eagle coins, many fractional gold coins, certain foreign coins not on the IRS reportable list, and U.S. coins minted after the IRS list was created are treated as excepted and generally not reported by dealers on 1099‑B absent special circumstances [7] [8] [9]. Dealer sources and IRS guidance underscore that specific named coins (e.g., 1‑oz Maple Leaf, Krugerrand, Mexican Onza) are on the reportable list and become reportable only when sold in the reportable quantity [7].
5. Quantity examples dealers cite — when a sale flips from exempt to reportable
Concrete thresholds cited by dealers and industry materials include: sales of 25 or more 1‑oz reportable coins in many cases (e.g., Maple Leafs), U.S. 90% silver coins when face value totals $1,000 or more, one kilogram or more of .995 gold bars, and other metal‑specific weight thresholds — these numbers come from the IRS instructions, dealer guidance and industry charts used to implement the IRS list [2] [7] [6] [10].
6. Reporting is not the same as taxability — the taxpayer obligation
Even when a dealer does not issue a 1099‑B, capital gains on sales of precious metals remain reportable on the seller’s tax return; industry groups and dealers repeatedly note that absence of a 1099‑B does not relieve the seller of tax liability and taxpayers should consult professionals to report gains on Schedule D/ Form 1040 as applicable [3] [11].
7. Where ambiguity persists and why readers should verify specifics
The IRS instructions, CFTC deliverability lists, and industry conventions create a patchwork where a given coin or bar may or may not be reportable depending on form, purity, count and evolving contract standards, so authoritative determination requires consulting the current IRS 1099‑B instructions and dealer disclosures rather than relying on blanket rules [2] [5] [3].