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<p>[QUOTE=&quot;statequarterguy, post: 1658946, member: 21782&quot;]I don&#039;t see how you can disagree with my assesment of the OP&#039;s #3 question - give me more detail.</p><p><br /></p><p>Gift taxes would not be due in this case simply because the donor gave more than the annual limit of $13,0000 or $14,000, unless the cumulative lifetime total of the donor’s gifts exceeding the annual limits, exceeded the lifetime exclusion of $5,250,000.&nbsp; Until the lifetime exclusion is reached, the amounts by which the gifts exceed the annual limits would simply reduce the lifetime exclusion.&nbsp; Since 99% of us have estates worth less than $5,250,000, we’ll never have to pay gift or estate taxes, regardless of how much we give away per year.&nbsp; Although, if you give away more than the annual exclusion, you will be required to file a gift tax return, so that the IRS knows how much of your $5,250.000 lifetime exclusion was used.</p><p><br /></p><p>The fact that the mint changes the prices throughout the year could mean the FMV has changed, yet does not affect the cost basis – the cost basis is what one paid for the coin (with shipping).&nbsp; If the mint lowers the price after the donor purchases the coin and before the gift is made, then that FMV might be used as the basis.</p><p><br /></p><p>If the OP claimed the gift was given at the time of the sale, the basis would not be FMV, unless the FMV was lower than the donor’s cost.&nbsp; Using FMV as basis is designed to prevent taxpayers from passing “built in losses” to another, not to allow taxpayers to pay less tax on gains.&nbsp; </p><p><br /></p><p>I don&#039;t know why many of you believe you can use FMV for the basis if FMV is higher than cost, the IRS Publication you cited states you use FMV for basis only when FMV is lower than cost.&nbsp; If you have a cite that says otherwise, please post it here.[/QUOTE]</p><p><br /></p>

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