Your Exit Strategy.

I was speaking of the IRS. They are lurking around every corner to assure that our great country remains; well; great.

 

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Glad you brought that up, because with everyone's plans here nobody has seemed to include them in. If you will your coin collection to an heir they may be subject to taxes on it, whether they sell it or not. However, if you give them, not gift, but GIVE the collection to someone before you kick off, or make sure who's left behind does so, there is no taxes on it, until it's sold. Be aware of how you pass down valuables. It may cost your loved ones a great deal.
Guy~

 

The government probably knows more about us than we know about ourselves. I recently moved some stocks in my Mother's Trust account, and when they were verifying I was who I said I was, they asked me multiple choice questions, one which had to do with a certain car she owned 20 years prior, a PO Box number she used to have 15 years ago, and so on. I could hardly believe how much they knew! Made me wonder if we have any secrets at all.

 

Depends on where he goes.

 

use as much cash as you can when buying
leave no paper trail
well thats what the movies say
and in a strange way its true
i will leave everything to my two sons
and they can do with them with as they wish
as id be gone i shall not be worrying about them
bnb your 24 i am 36 going 56 this should wait for a new day lol
dave

 

I would definitely check that with your CPA or tax attorney before moving forward under those assumptions.

Generally, under current federal tax law there are no taxes assesed to the beneficiary of your coins upon your death under your will or trust unless your total estate exceeds the then current exemption amount (currently $3.5 million dollars and expected to rise to $5 million in 2010 and beyond, though under current law that isn't the case). Thus, as long as you die this year w/ less than $3.5 million in assets your heirs receiving the coins will receive them 100% tax free and will get a step up in basis to the then current value. Therefore, they could sell the inherited coins the day after you die for that then current value 100% tax free with no capital gains owing. Please check with your State tax law though as some states do assess inheritance taxes.

If you make a lifetime gift of your coins however, the recipient of those coins inherits your cost basis in those coins (hopefully lower than what they are worth). So, when those coins are then later sold for current fair market value, there will be capital gains taxes owing (collectibles rate is currently 28%). Also, if you gift more than your annual gifting exclusion amount ($13k per year per donee), you as the donor may be liable for gift taxes depending on how much you give away and whether you have used up your lifetime exclusion for gift tax purposes (currently $1 million).

In summary, making a lifetime gift of coins may not be the best idea if you don't have a very large net worth that would bring the estate tax into the picture.

And once again, don't rely on coin forum tax advice, consult with your CPA and/or tax attorney.

 

Thats why I emphasized GIVE not "gift". There is a huge difference as far as taxes go. To be honest, these days 3.5 million isn't that hard to accumulate in inheritance. But, there are legal ways around that as well, all in keeping with the IRS's guidelines. But thats as far as I'll go into that. Like you mentioned, anyone with a good amount of coins or anything should consult their CPA before committing anything to paper.
Guy~

 

Don't forget state taxes on estates, which can be much more than federal. For example, here in New Jersey, the State takes 110% of everything you own or earn from birth to death regardless of where it was acquired unless you pay the legislature to pass a law specifically exempting you.

 

My exit strategy ???? put the coins in my coffin before they put in those 9 inch nails. With Luck someone will dig me up in 500 years and have a good life. Traci :kewl:

 

Make sure they throw in a good amount of desiccant.

 

Spent 45 minuets just now reading and rereading this thread and I want to say I proud to be a CT member. Hope everyone had a very happy Thanksging. zeke.

 

Thanks everyone for your concerns. People that show interest in others are usually themselves great people and I sure wish the entire world was full of people like the ones on this forum.
And as to thanking that big guy up there, I do that all the time now. I guess no one really considers the worst happening until a doctor says something like CANCER. That one word changes an entire life's outlook. I've met so many people at hospitals with an entire new outlook on life due to that word.
And I really NOW do worry about the end results of all my collections and personal belongings. It was odd though that recovering from all those opperations I was thinking of what the future of my coins could be. I now wonder why I wasn't thinking about living.

 

I'm sure you'll make the right decision on who to give your collection to. Good luck!

 

Not to make this post a sob story but in case you ever do go through this lousy Cancer stuff, here is something you seldom hear. The Chemotherapy usually also gives you Arthritis. Now that may sound like no big thing since it saves a life but holding on to coins is really irritating. I find I have to be so much more carefull trying to hold on to coins now. Of course old age has nothing to do with that.:whistle:

 

Well, If I would of seen this thread, before I started my "I am truly thinking of burying my coins" thread, I would of just posted it here.

Buried treasure seems to warrant its own thread I guess. But alot of interesting posts here.!!

The more I think about it, I guess I could give them to my other family members.. hmmmm..alot of options.

 

Carl,

I am sure that we are all pulling for you and praying for you. I hope that things get better for you and your family. Many of us here think of the CT members as a second family and you are no exception. Keep fighting and keep positive. As Jimmy Valvano said: "Don't give up. Don't EVER give up!"

 

Carl, give me a PM, depending on where you are, I might have a very good doctor I can recommend you to.

 

Once again, I renew my suggestion that this is cyberspace and no identity can truly be verified. I understand that the IRS is the world's largest collection agency and they are VERY good at what they do. Never underestimate them, but never assume that they have eyes in your walls either. That's called paranoia.

 

Like any good parent, I plan to pass that problem on to my three sons. So I guess my exit strategy is to just die. :stooge:

 

Sir Charles - kinda off topic for the long explanation, but since I saw it, I figured I'd provide some flavor for your comment : )

IRS uses a fraud prevention tool mainly used by online banking and finance account-opening businesses. They use credit bureau data compiled with public record data to ask so-called "out-of-wallet" questions. Meaning, if your wallet was stolen, with drivers license, SS card, etc., it still wouldn't be enough for an identity thief to fool the system. Because they ask questions like "what car did you buy 20 years ago", or "what was the monthly payment on your first mortgage" etc., they usually build in a threshold where you may only need to answer 3/5 questions properly (the thresholds all depend on the agency, bank, etc.). I've had to answer such questions a few times myself and found myself thinking, "oh wow! I totally forgot about that car!". But Big Brother didn't!