With the price of gold having dropped almost $150 from its recent highs, I decided last week that it would be a good time to grab a few more ounces. I logged onto the website of my favorite supplier, put what I wanted into my cart, and went to checkout, when a message came up informing me that the politicians and bureaucrats of the State of New Jersey require that sales tax be collected on precious metals. At 7%, with the price of gold around $2000, that comes to roughly $140 per ounce.  On top of that there’s a premium to the dealer of a little over $100. (Not sure if that’s taxable.)  Then if one is fortunate enough to one day sell at a profit, you are required to pay capital gains tax, which I believe is now 15%. 
 

All that would appear to make it prohibitive for NJ residents to buy physical gold. I thought a new law had been passed, but it turns out this follows from he Supreme Court ruling a couple of years ago requiring online dealers to collect sales tax in states where it is in effect.  

https://www.goldbroker.com/sales-tax/new-jersey

You won’t pay state income tax as far as I can tell but the 7% is probably higher than what the tax rate would’ve been.  As far as federal taxes on LTCG it could potentially be  0 based on your income.  Here’s a calculator to figure it out. It’ll also give you state taxes for investments. 
 

https://smartasset.com/investing/capital-gains-tax-calculator#R4VtcFqRXq

I thought gold was taxed as general income. In which case you may wish it was at capital gains 15%.

The black market awaits you:

https://www.reddit.com/r/Pmsforsale/

If you have are single and have an AGI of 200,000 or more or married with an AGI of 250,000 or more don't forget you need to contribute to others health care at 3.8%.  Thanks Obama.  

14 minutes ago, beachwhistle said:

I thought gold was taxed as general income. In which case you may wish it was at capital gains 15%.

It depends on if it's short term (under one year) or long term (more than one year) capital gains. They are taxed differently.

12 minutes ago, DirtyDigz said:

The black market awaits you:

This is how you should be buying/selling your PMs.

I go in person to my guy,    the reason to purchase metals like gold and silver is basically to protect ( hide ) your assets from the govt, potential ex wifes lawyers and the like.   hopefully silver keeps going up.

what any man should be doing from the day they get married is to buy metals when the price is right.   so in case your wife goes postal none of that silver of gold is any account.      everytime you go get grocerys you take out an extra 20 or 40 and buy a 10oz bar of silver when you get enough.   it adds up over time.

the second thing a man should do is never get married,   its an old worn out tradition that only screws the men.  kind of like a dinning room in your house when we all eat in the TV room.

I just bought a 50g bar a couple of weeks ago. Had to pay sales tax. I think NJ is one of only a few states that charges tax on bullion. Another reason of 100 to move out of NJ. https://www.jmbullion.com/tax/

I bought bullion in 2013 and didn't pay any tax then. So, between the premium above spot and the 6.625% NJ sales tax, you would have to hold the gold a while to make money.

I believe if you pay with an ACH transfer or by personal check, buying precious metals is not reportable to the Fed. If you pay with cash, cashiers check or money order, it can be reportable. https://www.jmbullion.com/reportable-bullion-transactions-infographic/

This tax is real and certainly BS. Other certain states wont tax you if you buy a certain amount of PM's I think its $1500. either way it sucks. This applies to Bullion and Numismatics. I know as I collect them and it has certainly curtailed my buying

Are all most states forcing to collection tax for metals just like online goods?