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My Dad left me a substantial U.S. numismatic coin collection (mostly morgan and piece silver dollars) as well as Mexican olympic 25 peso a mexican silver. I want to keep type sets of the U.S. coins and liquidate the 1968 Mexican olympic 25 peso silver (Type 1, 2, and 3), the proceeds, of which, will go to a family home for the benefit of our children and grandchildren (to honor my Dad's legacy...he was 98 and had been collecting for thirty or more years). I will continue to collect and expand on the U.S. Coin collection.
My questions are these:
1. When does this hobby become a business with accounting appropriate to that endeavor (i.e. capital gains, expenses, income, profit...etc.)?
2. What are the best media (2x2s, airtites, flips, etc.) to place (safely secure) these coins for sale and shipment?
3. Should I consider coinbug or others (don't think i have the value or quantity for Heritage) over ebay...have read about the hassle of ebay.
Well, Logger.... first, welcome to Coin Talk. I am sorry to hear about your father, but I am sure he would be excited in the fact that you are trying to continue his coin collecting legacy. I can only hope that my kids will one day do the same.... but first I must have some kids!
In reference to your coin holdings that you are looking to sell, with 10 posts (which you already have) you can start posting in the open section and see if any of the memebers of CT may be interested in buying some of your stuff. I know that I would be interested in posibly purchasing some of your items, given if the price is right. GOod luck.
Welcome to Coin Talk and I'm also sorry to hear about your father's passing. The question you ask I believe depends on the state, but in your case i think the issue is actually an inheritance tax and capital gains.
Ruben
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obviously you need to get a hold of an accountant....
Ruben
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"The tremendous problem we face is that we are becoming sharecroppers to our own cultural heritage -- we need the ability to participate in our own society." Coin Talk Museum Exhibits http://www.mrbrklyn.com/coins.html
Guess i was asking pretty broad questions. Agree that i need to talk to accountant and weave in the inheritance taxes capital gains, etc.
Guess there is a mountain of information on the use of flips, 2x2's or airtites. Just have to read more the literature and make some decisions.
No comments on how to liquidate...again...just a matter of researching and getting my own feel for the right market for the right coin.
The coins i want to liquidate at the moment are the 1968 Mexican Olympic 25 peso's, type 1. Saw one on Coinbug for $C20. Didn't see any on ebay. For some reason i remember reading on this forum that coin sales are to be conducted elsewhere. Maybe i can start with what's this coin worth?. Will post there.
I see you are from Washington state. It does matter where your dad had his permanent address ( where he would have been liable for state income tax if applied) when he passed. If it was Washington state, which is one of 7 states with estate tax not linked to the federal estate tax then :
First you should value all assets transferred, including houses, cars, coins, etc. The executor of the will has to do this by appraisals or sales and submit the total value to the court. This will determine the estate tax responsibility. According to the tax rates on the internet if he died in 2008, and had 999,999 or less value, there should be no estate taxes. Neither state nor Federal. Over 1,000,000 it is 14% up for Washington state share. Federal limit for 2008 was 2,000,000. So you might owe Washington tax, and not Federal. If he died in 2009, State tax is the same but Fed is up to 3,500,000.
If it looks like you have to pay taxes ( due to court record of value), I recommend also to retain an estate lawyer and get an tax accountant to do your forms. The executor will have to do your dad's tax forms until the estate is settled. The one I did for the family lasted 3 years, and no estate taxes were needed.
Now as to Capital gains, the value of the coins you inherit will have an initial basis of the value determined as of your dad's death. You should ( or have the appraiser) if you need one, research what each coin was worth if sold that day. Then when you sell that coin, you are responsible for capital gain ( short or long term) based on any increase in value from that figure, not from what your dad paid for it. If he was alive and gave it to you, you would have to pay based on increased from when he obtained it, but the law assumes that estate taxes would accommodate that.
I am not a lawyer, but have been executor for several family members and started with a "Probate Law for Dummies" and ended up in the county Law library. If a Trust of any kind is involved, ignore above and get an Estate lawyer to make sure the Trust and Trustee is fair and accurate in actions. Sorry for your loss
I remembered ( a keyclick too late) you mentioned you want to liquidate. Sometimes it is necessary to do quickly if distribution has to occur. Might be best for you would be if you solicited several buy offers, and sold all at once to the best offer. That would make calculations easiest. Some of the coins may only be worth silver value and the value on your dad's day of death would be easy to determine.
I'm not sure if you have to pay taxes on coins you sell. I know in PA you don't pay tax when you buy so I don't think you should pay taxes when you sell. Most likely it would be claimed under income tax.
I could be wrong though.
Also when you claim do you claim dollar for dollar? Or do you claim the value?
I'm not sure if you have to pay taxes on coins you sell. I know in PA you don't pay tax when you buy so I don't think you should pay taxes when you sell. Most likely it would be claimed under income tax.
That would be sales tax, not income tax. And I believe sales tax on coins varies from state to state.
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I'm not sure just how you collected those coins. If they went through an attorney, there is that record of you collecting those coins as an inheritance.
If you were just handed them by someone in the family or someone just opened a safe box, or you were named in a will to get a bunch of STUFF. If there is no accurate record of you receiving those coins, you couldn't be hit with any kind of inheritance tax. Not meaning to be giving you tax evasion advise over the internet, but just who knows what you got.
People take inheritance coins all the time and just go to a coin show and sell the entire mess. You should really contact an atorney and preferably the one that may have handled the estate. In every state there are different laws as to inheritance, sales taxes, capital gains of long term, short term, etc., etc., etc.
When my son gets my stuff someday, he will just go to my safe deposit boxes. They all have his name on them. Everything in them is now his.
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