If this is your own property and you are not in the trade or business of scrap gold, then you need to determine if the original cost of the item is less than the scrap value. If so, report the Sale on Schedule D. Your gain will be taxed at up to 28%.

If you are in the trade or business of scrap gold, all transactions are reported. Use Schedule C to show all money received and your cost of goods and other expenses. The net profit is subject to income tax, Social Security, and Medicare tax.