What belongs in the basis of purchased metal?
Start with the invoice, including the dealer premium, and identify acquisition expenses that belong in basis under the applicable tax rules. Do not assume every later storage or ownership expense is added. IRS Topic 703 and Publication 551 explain cost and adjusted basis.
What changes for inherited metal or an IRA?
Gifted and inherited property follow special basis rules; the original owner's purchase price is not always the recipient's basis. Keep transfer and valuation records. Separately, basis in a traditional IRA generally tracks after-tax amounts not yet recovered, rather than what the IRA paid for its bars. Form 8606 addresses that IRA calculation.
How does cost basis show up in practice?
Hypothetically, paying $10,000 for metal plus a $500 purchase premium gives a $10,500 starting cost before other qualifying costs or adjustments. A later market value of $12,000 does not by itself increase that basis. Keep the invoice and confirm tax treatment with a qualified adviser.