Inherited want to liquidate

I know in Alabama you can receive up to $10,000 a year as a ''gift'' without reporting this as income. Sounds like to me you received a gift(s) not an inheritance. Been there, done that with no problems. Course I had a good lawyer friend.

Now if you sell one of these gifts, you are suppose to report any capitol gains on these items in excess of their value on the day they were given to you. If you can not remember the exact day, I doubt anyone else will either.

That was the way it was when I had to handle all of this stuff. Call me a bad boy but I did not go out of my way trying to find assets after my father passed.

I do not think it is a complicated problem. As emphasized, the best thing you can do is get a good tax lawyer. Someone who know what they are doing and up with current regulations Sorry for the loss of you father. Been there to.

 

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Michigan is $10K as well, from what I understand.

 

I was under the impression that it was the responsibility of the giver to pay gift tax, not the recipient. But a tax/estate attorney would know for certain.

 

Take your coins to a show or a coin ship. Sell them for CASH. This is very important. As long as you don't go over the $10,000 per transaction limit you don't have any thing to claim. Now use the cash to take a vacation or go out and eat. Cash is off the books and does no have to be reported. This is why your father gave to your inheritance in coins. They can be sold for cash with out paying taxes.

 

I would love to know just where any of this is written. I guarantee that the IRS does not agree with that statement.

 

That is an IRS rule and applies nationwide. Anyone can give anyone else up to $10,000 per year without tax implications. So a father and mother can give each of their children $20,000 a year without having to pay gift tax. This is a good way of transferring wealth without having to give a hunk of it to the tax man.

BUT it must be done properly. It cannot be done after-the-fact; i.e., it cannot be done after the person giving the money (or dollar equivalent in property) has died.

Also be aware that the first $500,000 of an estate is exempt from estate taxes. (That figure may have changed and almost certain to change with the new administration.) So you may not owe inheritance tax on the coins depending on the size of the estate.

The above is not to be construed as tax advice. You should seek the advice of your accountant.

 

By the looks of your avatar Bruce, I would be highly suspicious of any advise you gave or offered, as it might land me in the pokey or under indictment.

He is tellin you right folks, check with a tax pro familiar with your STATE laws, not just the feds