I have scrap gold that I am sending to a refiner. Do I have to report this as income on my taxes?

Question

Actually the gold was inherited years ago from my grandfather who owned a repair shop. Would it be taxed (or reported) differently as an inheritance. It is about 6,000 dollars worth of scrap.

Answer 1

Only if you receive more from the sale than you originally paid for it.

Answer 2

If this is your own property and you are not in the trade or business of scrap gold, then you need to determine if the original cost of the item is less than the scrap value.  If so, report the Sale on Schedule D.  Your gain will be taxed at up to 28%.

If you are in the trade or business of scrap gold, all transactions are reported.  Use Schedule C to show all money received and your cost of goods and other expenses.  The net profit is subject to income tax, Social Security, and Medicare tax.

Answer 3

If you do have to report it, you would only have to report the selling price and the original purchase price on Schedule D.