Bill Summary
The Monetary Metals Tax Neutrality Act of 2019 aims to amend the Internal Revenue Code to clarify that any gain or loss from the sale or exchange of certain coins or bullion will not be subject to recognition for tax purposes. This means that individuals who sell or exchange gold, silver, platinum, or palladium coins issued by the Secretary of the United States or refined gold or silver bullion, coins, bars, rounds, or ingots will not have to report any gain or loss on their tax returns. This exemption will apply to sales or exchanges made after December 31, 2019. This legislation is meant to promote the neutrality of taxation on monetary metals.
Possible Impacts
1. Individuals who frequently buy and sell precious metals such as gold or silver coins or bullion may no longer have to pay taxes on any gains they make from these transactions. This can potentially save them a significant amount of money and make it more lucrative to engage in these types of investments.
2. People who rely on the sale of certain coins or bullion for their income, such as small-scale miners or collectors, may see an increase in their overall profits without having to factor in taxes on these transactions. This could potentially provide them with a better standard of living or allow them to invest more in their businesses or hobbies.
3. The legislation may also encourage more people to invest in precious metals, as the potential for tax-free gains could make it a more attractive option. This could lead to a larger market for these commodities and potentially drive up their value, benefiting both investors and those who rely on these metals for their livelihood.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1089 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 1089
To amend the Internal Revenue Code of 1986 to clarify that gain or loss
on the sale or exchange of certain coins or bullion is exempt from
recognition.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 7, 2019
Mr. Mooney of West Virginia introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to clarify that gain or loss
on the sale or exchange of certain coins or bullion is exempt from
recognition.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Monetary Metals Tax Neutrality Act
of 2019''.
SEC. 2. EXEMPTION FROM RECOGNITION OF GAIN OR LOSS FROM SALE OF CERTAIN
COINS OR BULLION.
(a) In General.--Subchapter O of chapter 1 of the Internal Revenue
Code of 1986 is amended by inserting after part IV the following new
part:
``PART V--SALE OF CERTAIN COINS OR BULLION
``Sec. 1071. Sale of certain coins or bullion.
``SEC. 1071. SALE OF CERTAIN COINS OR BULLION.
``No gain or loss shall be recognized on the sale or exchange of--
``(1) gold, silver, platinum, or palladium coins minted and
issued by the Secretary at any time, or
``(2) refined gold or silver bullion, coins, bars, rounds,
or ingots which are valued primarily based on their metal
content and not their form.''.
(b) Clerical Amendment.--The table of parts for subchapter O of
chapter 1 of such Code is amended by inserting after the item relating
to part IV the following new item:
``Part V. Sale of Certain Coins or Bullion''.
(c) Effective Date.--The amendments made by this section shall
apply to sales or exchanges after December 31, 2019.
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