Capital Gains/Losses on coins

I would have thought FMV basis would pass through to the donee and any difference in FMV relative to cost would be recognized as a gain or loss by the donor.

 

Log in or Sign up to hide this ad.

I think most people (not all, but most) on here aren’t sitting on coin collections worth enough for the IRS to care about. If someone sells the occasional coin for $100, do you think the IRS is going to come knocking down your door if it’s not on your taxes? The estate and gift tax stuff always confused me, mostly, because I have absolutely zero interest in it, and I don’t have anyone “gifting me” nor am I “inheriting” over 6 million dollars anytime soon… The thing that strikes me is, I live in Los Angeles, where I know a lot of people that live off of their parents $, even though they are 30 years old, or women that have rich, (sometimes married) boyfriends who pay for everything - their apartment, car, clothes, boobs, etc. Do you really think that these women are sitting around thinking about paying taxes on their $15,000 handbag that their sugar daddy bought them, or that their sugar daddy gives his CPA a list of all of the “gifts” that he gives to his “girlfriends”? Our country has gotten ridiculous with all of the gift taxes. And I don’t want to turn this into a political debate, though I have lived in Chicago and Los Angeles, so one can easily determine which way I vote if they thought about that, but with the state our country is in, and how it takes the IRS years to figure out that people like the actor Wesley Snipes had back taxes of like 15 million, do people really worry about claiming capital gains or losses on $17.50? This conversation reminds me of an ex-boyfriend I have, and there are many reasons he is an ex, but one was that any time we went to dinner and talked “shop" for a bit (we are both in the entertainment industry), he would save the receipt and make a joke about how he was going to use it as a tax deduction…(he wasn’t kidding either, he was super cheap). It made me envision a future or him wanting to use our future children as tax deductions, and making me schedule C-sections on certain dates to qualify for a certain tax quarter…ugh! lol I tend to be very generous to the people in my life, perhaps more so than I even should be at times, and if I’m lucky enough to have the money to give amazing gifts one day, the last thing I want people to have to worry about is accepting a gift from me and being worried that they can’t afford to pay the taxes on it...

 

I think you might be surprised. Besides, since we started this conversation 594 threads and 8 years ago, it had inspired at least myself to actually look up the laws regarding this, which is good in my situation.
Guy

 

Don't worry, you can give all you want - the donee (the person receiving the gift) never has to pay tax on the gift when received. The donee only has to pay tax if they later sell the gift. So, want to know when my birthday is? (-;

Also, I’m not so sure the IRS would consider some of the amounts these “boyfriends” give their “girlfriends” as gifts - more like fees for services.

 

I hate 'Tax Season'...........

 

Shhhhh!!! Frank will hear you!

 

He hates it too. But it sure does line his pockets........:devil:

 

I have had several coin dealers tell me that a keeping a notebook with purchase prices and dates is good enough to provide a cost basis for the IRS. Is this true? It seems that most dealers are reluctant to give out receipts.

 

Depends, it may work if your financials support your claimed cash purchases/basis. A few things to be considered would be does your reported income support your purchases? Can you prove your attendance at some shows/locations where you purchased? Can you show cash withdrawals close to your cash purchases? If you can’t show the cash you used came from reported income, your cash purchases may be from unreported income, thus your basis would be zero.