Does the IRS track gold purchases?

Gold prices have reached record highs of over $4,620 per ounce as investors seek safe havens amid economic uncertainty, leading to increased interest in physical gold investments. While the IRS does not automatically track gold purchases, dealers must report cash transactions exceeding $10,000, and selling certain gold types may trigger reporting obligations. Gold is classified as a collectible by the IRS, subjecting profits to capital gains tax of up to 28%. It’s crucial for investors to maintain accurate records for tax purposes, as any unreported gains can result in penalties during audits.

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