Your Exit Strategy.

selling high grade stuff

hoarding silver and gold bullion coins for the revolultion that is coming, also hoading guns, ammo,water mre's, propane and gas on the farm

 

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Not gonna sell my collection, but from time to time I will go pull an album and go through it and perhaps upgrade a few. I've got everything my grandmother collected and everything my Mom collected, and I'm just not itching to sell them because they are complete collections of coins. I'm more into getting my children interested into collecting so they can continue my collection on down the line.

 

It's a term I use for this thread. Don't be so anti-investing, please, it's apart of life. It seems to pain you a bit. Chill.

 

Rick, with all due respect, I am a staunch conservative and find your views VERY spot on the money but I don't want to even go there. Hope you understand

 

let it go, both of you.

 

No problem.

 

As a matter of fact, I subscribe to a plethora of investment newsletters, and spend a significant part of my time dealing with my investment portfolio. Coins and my collection are not part of that portfolio, and I really don't enjoy having my limited recreation time interrupted by other people's investment activities. My problem is not with your interest in investing - it is with your insistance that I share one of your particular interests while you disrespect one of mine!

 

Cave Troll said to stop it and I agreed to it. That doesn't mean you can keep going according to him.

By the way, it's always the posters choice to post on a thread of mine and never do I "disrespect" anyone's interests. Thanks

 

Great. Coins aren't part of your investment portfolio, but for many of us here, we also view our collections as an investment. The terms collection and investment don't have to be mutually exclusive. If somehow that viewpoint interrupts your collecting, then just ignore the thread.

 

My (sic) exit strategy is dying. That is all. You could tell me my coins are worth 15 cents or 15 million dollars, it does not matter to me and would not change the way I do things.

 

I have a bunch of very common coins that I plan to sell/trade at some point for other common coins that I want more. I don't consider this an exit strategy.

 

my exit strategy is death. I am a hoarder, not an investor. I collect coins that I like and want to have. I don't often sell any of them, although on occasion, I do.

exit strategies are for investors or people needing to flee something

 

It's kind of like marriage. What is your exit strategy. I don't think most of us (recent polls suggest 69%) are thinking about that, but mine is when I kick the bucket.

 

Just a few thoughts for those that plan for the future.

Save every receipt. If you don't have it and you sell it, you owe taxes on anything above face value. Ain't that fun. This can be a real problem with a large collection.

I'm sure many of you know this but, maybe some don't.
What you have in a coin and can prove is called the "basis". That figure is the cost of the coin plus postage, insurance and grading fees, if you had it graded. If you sell, you owe taxes on anything above that basis figure. You do get to add the cost of selling it to the basis.

If you give it to someone, they own it at your basis and will pay taxes the same as if you had sold it. I'm not sure if they need receipts to prove the basis. There is a thing called "gifting", but that's something to talk with the CPA about. Gifting may allow them to own the coins at market value. That's cool.

If you pass the coins by way of will, they will own them at market value.
They call this a "stepped up" basis. There are many long term collectors that don't wish to sell because of the taxes (cap gains). I think long term cap gains are at 15%. Lots of property pass by will because of this issue.
The new owner will only pay cap gains of what sells above market value and can claim a loss on what sells below market, but there are limits to losses.
I'm thinking the max loss figure is $3000 but the balance can carry to future tax years.

Please don't trust my words. Talk with your CPA. You will be dealing with both state and federal tax laws.

All of this is part of a planned exit strategy. Everyone needs to have a plan.
It's really all just money management.

Edit to add. The 15% figure I used is wrong. Coins get taxed at 28%. I told you not to trust me.

 

alot of this sounds the same as stocks, which I am always having to pay Uncle Sam and such. How long are you suggesting we hang on to reciepts for the coins?

 

It is a lot like stocks. same idea but coins bring more to keep track of.
As collectors our tax rate would be the same as ordinary income if I understand the federal hobby tax code. That's not cool and only your CPA can tell you what the state is going to do to you.

As far as saving receipts for coins, forever!!!! They should travel with the coin if gave to family. That's the only proof of the basis. With stocks, bonds, houses and stuff like that the price is public record but receipts from cost related to those, should be saved. Crazy stuff.

 

I have my coins in a safe deposit box. My daughter has a signature and a key. In the event of my demise, no one will know a thing. No taxes, no estate, no nothing!!

 

Exactly, even those of you who are adamant that you're just a collector and will hold your coins till you die should of course consider your collection as part of your overall estate plan. Since your death is your exit strategy in that case, make sure you have planned well so that your heirs are left in the best position as possible.

As ldhair points out, tax planning is part of the story. Though you should note that in almost all cases the 15% long term capital gains rate is NOT applicable to sales of coins/bullion. Coins/bullion are generally treated as "collectibles" for tax purposes and gains on collectibles are taxed at a long-term rate of 28%!!!!!!

You should of course not rely on advice here on the message boards but instead consult with an attorney who can look at your specific estate plan.

 

Originally Posted by GDJMSP
Collector, investor or speculator - everybody, and I do mean everybody, should sell some coins from time to time. There is nothing that exist that will teach you more about buying coins than selling them will.


Agreed. Big time.

Mee too, majorbigtime!
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They will have to pry the Buffalo's out of my gnarled, shriveled-up hands as they lay me out.

Just kidding, of course!

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