Payment by Check & Bankwire to IDP
Payment settlement for all precious metals transactions are made payable to IDP Consulting Group, LLC, and we request that personal checks be promptly mailed by US Postal Service 2-day envelope to the address on our Contact IDP page. IDP Consulting Group, LLC will accept personal checks that are drawn on domestic banks, and these checks will be held for 10 days prior to shipment of all precious metals orders. For transactions above $10,000, we request a bankwire be sent within 48 hours. Bankwire instructions for our ABA routing number, bank address and account number will be verbally provided by our firm to assure confidentiality. Bankwires can be sent directly to Dakota Depository Company for new depository accounts managed by IDP. To avoid internal merchant fees, we do not accept credit cards. We do not accept money orders, traveler’s checks or personal checks that are drawn on foreign banks. All cashier’s checks over $10,000 are accepted, and we are allowed three days for deposit of good funds. It is the intention of IDP Consulting Group, LLC to provide quality products and service for our clients. Occasionally, retailers will offer special promotions or “loss leaders” to attract new customers. If IDP clients are offered coins or products that are part of our normal product line, we will make every effort to meet or our competitor’s prices upon notification.
All order confirmations are locked-in with a corresponding confirmation number for every purchase transaction with IDP Consulting Group, LLC. This means that all trades are binding upon both buyer and seller and may not be revoked, rescinded or altered regardless of market volatility or price discovery on major indexes. An Order Confirmation and Invoice is promptly mailed to all clients prior to shipment of precious metals. All coins and bullion products are discreetly shipped in plain brown packaging and are either shipped registered and insured by the US Postal Service or fully bonded UPS shipments within the continental United States. Upon shipment of your precious metals, you will be provided with tracking numbers for your safety and convenience. IDP Consulting Group, LLC liability, either in tort or contract, shall be limited to replacement of any defective goods, excluding incidental or consequential damages. IDP makes no warranties for client investment suitability and IDP shall be held harmless against any claims. All consultancy fees are waived for new IDP clients.
Privacy Policy & IRS Reporting Requirements
It is our policy at IDP Consulting Group, LLC to honor our client’s privacy and confidentiality unless required by IRA regulations or existing federal laws. To better assure our client’s privacy we do not accept cash in excess of $10,000 for precious metals purchases. The Department of the Treasury and IRS have defined “cash” as various financial instruments that are reportable on Form 8300 by all financial institutions. Pursuant to Section 352 of the USA PATRIOT Act adopted on July 11, 2005, and renewed on May 26, 2011, we are also required to secure proper ID and valid addresses for prospective clients in order to prevent money laundering and other terrorist activities. IDP Consulting Group, LLC collects contact information submitted online or by mail for marketing purposes only. Your personal information is never sold or rented to any third party for marketing purposes without your consent. IDP Consulting Group uses this proprietary information strictly for sending notices and our free monthly newsletter.
Finally, IDP Consulting Group, LLC is required the IRS to report certain precious metals liquidations on a Form 1099-B each January for previous year transactions. These precious metals include 90% bags of pre-1965 silver coins, 1,000 oz. silver bar, Canadian Gold Maple Leaf (25 oz.), gold kilo bar (32.15 oz.) and various platinum and palladium bars (Title 26, CFR 1.6045-1; Rev. Proc. 92-103). There are no reporting requirements when you make any purchase of precious metals. and the following coins and bars are not dealer reportable no matter what quantity you sell: 100 oz. silver bar, 1 oz. silver round, Canadian Silver Maple Leafs, American Silver Eagles, Perth Mint gold bars, Austrian Mint coins, American Gold Eagles, American Gold Buffalos and all fractional gold coins. All investors are required to report capital gains with their annual tax returns. This is most commonly reported on Form 1040, Schedule D (line 13) for long-term capital gain. Consult with your tax accountant for further information.
Here in the US, most numismatic (rare coin) dealers promote highly marked-up certified gold and silver coins because these professionally graded coins are not dealer reportable; and the impression is that all bullion coins are reportable (even confiscatable), and the only gold and silver coins you should acquire are rare and semi-rare coins for privacy concerns. Going even further, they also give the impression that because these “special coins” are not reportable there is also no capital gain tax to report to the IRS – and this is false, as indicated above for capital gains that are reportable on Form 1040, Schedule D. There is a 28% capital gain tax when you sell any gold or silver coin, and it does not matter if it is a bullion coin, rare coin or pre-1965 junk silver coins found in your attic! To make matters even worse, these same gold dealers exploit investor’s fears and urge their customers to exchange (swap) all of their gold bullion coins for numismatic rare and semi-rare gold coins to avoid a dreaded confiscation or reportable event. Is this wise or legal? Certainly not on both counts. The IRS Code is very clear when it comes to like-for-like Section 1031 Exchanges (26 U.S.C.§1031). The IRS has ruled that exchanging bullion coins for numismatic coins does not qualify for non-recognition of a capital gains tax. “The rationale for this is that the value of numismatic-type coins is determined by their age, the number minted, along with history, art and aesthetics, condition, and finally, metal content. On the other hand, the value of bullion coins are determined solely on the basis of their metal content” (from a legal brief). IRS Section 1031 Exchanges even prohibit exchanging gold and silver bullion. “The IRS reasoned that while silver and gold have similar qualities, the uses of silver and gold are intrinsically different in that silver is an industrial commodity, while gold is utilized as an investment and a product in itself” (legal brief).
IDP Consulting Group, LLC abides by the above reporting requirements, and you are strongly advised to avoid the numismatic gold dealers in the US that are providing bad legal and tax advice to their customers, as indicated throughout this website. As an independent precious metals consulting firm, we are dedicated to protecting our clients from the predatory practices in this industry, and we want to earn your trust by providing accurate information, accounting, fair prices and customer service. For precious metals accounts, we provide a 1099-B for all client liquidations that are required by law. For Precious Metals IRA account holders at Equity Trust Company, the appreciation of precious metals in your Precious Metals IRA account is not subject to an ordinary capital gains tax of 28%, or potential windfall profit tax by the IRS, because you have a qualified tax-deferred IRA account. For traditional IRAs, you have a taxable reporting event when you withdraw IRA funds prior to 59½ that incurs a 10% early withdrawal penalty on a Form 1099-R, that may also include state tax penalties. In addition, the distribution of an early IRA withdrawal is a reportable event to the IRS, and will be treated as ordinary income for tax purposes. All normal distributions (after 59½) for a Precious Metals IRA converted from a 401(k), 403(b), 457(b), 408 (k), Keogh or tax sheltered annuity are penalty free and is reportable on Form 1099-R as ordinary income. If you have a ROTH IRA, you can withdraw after-tax contributions, but you can only take qualified distributions after a five-year period to avoid a 10% withdrawal penalty that is also reportable on Form 1099-R. Precious Metals IRA account holders that are 72 years old must take a Required Minimum Distribution (RMD) that is mandated by law and reportable on a Form 1099-R, and this income will be taxed as ordinary income for that calendar year. The deadline for RMD is December 31st. Precious Metals ROTH IRA accounts are exempt from RMD because taxes have already been paid in previous years. For more information, you are invited to contact our office.