Crypto → Bullion Tax Basics

Disclaimer: This article is for educational purposes only. It is not tax advice. Always consult a licensed tax professional for guidance on your specific situation.

When converting crypto into physical gold or silver, tax reporting can feel complicated. The IRS views digital assets as property, meaning transactions may trigger taxable events. At Veldt, we believe in educating clients about the basics so you can approach purchases with confidence.

Here’s what to know about IRS Form 8300, IRS Form 1099-B, and capital gains taxes when buying bullion with Bitcoin or other crypto.

IRS Form 8300 (Cash Reporting)

• What it is: Form 8300 is used to report certain cash transactions over $10,000. The IRS defines “cash” to include not only paper currency but also cashier’s checks, money orders, and in some contexts, cryptocurrencies.
• When it applies: Dealers must file Form 8300 when they receive more than $10,000 in cash in a single or related transaction.
• What it means for you: If you buy bullion with cash and it qualifies under reporting rules, the dealer may need to file Form 8300 with the IRS, including basic details about the transaction.

IRS Form 1099-B (Reportable Bullion Sales)

• What it is: Form 1099-B is used to report certain sales of precious metals back to a dealer. Not all bullion is reportable—only specific coins and bars that meet IRS criteria.
• Examples: 3+ Kilo Gold Bars or 100 troy ounces in a one 100-oz bar, 5,000 troy oz of silver in 5 x 1,000-oz bars, etc. For more information please see the IRS Reportable Bullion Sales section.
• When it applies: Dealers must issue 1099-B to both the seller and the IRS when the thresholds are met.
• What it means for you: If you sell certain bullion back to a dealer, the IRS may receive a 1099-B reflecting the transaction.

Capital Gains Taxes on Crypto and Bullion

• Crypto sales: Converting Bitcoin (or other crypto) into bullion may count as crypto disposal. Any profit from the time you acquired the crypto to the time you spend it may be subject to capital gains tax.
• Bullion sales: Later, if you sell bullion for more than you paid, that profit is calles Capital Gains, and is also potentially taxable.
• Recordkeeping is key: Track both your crypto acquisition cost (basis) and your bullion purchase price for accurate reporting.

Practical Steps for Buyers

• Keep detailed records of when and how you acquired your crypto.
• Save invoices for your bullion purchases.
• Consult a tax professional about how Form 8300 or 1099-B might apply to your situation.
• Plan ahead — consider using stablecoins or different crypto strategies to manage volatility and simplify reporting.

Why This Matters at Veldt

• We are committed to transparency and compliance with IRS rules.
• Our role is to provide secure bullion transactions, while your tax advisor helps you manage reporting.
• We make it easy to access invoices and records for your bullion purchases.

Key Takeaways

• IRS Form 8300 may apply to cash-to-bullion purchases over $10,000.
• IRS Form 1099-B applies only to certain reportable bullion sales.
• Capital gains taxes may apply both when you spend crypto and when you sell bullion.
• Always consult a professional for personalized tax advice.