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<p>[QUOTE=&quot;Hobo, post: 396735, member: 11521&quot;]You are absolutely correct. The seller may have exposed himself to an income tax obligation by using the Kruggerrands for his earnest money deposit. He certainly will need to report this transaction. He will have a reportable capitol gain if he bought the Kruggerrands at a price less than that credited to him by the seller and broker. (He would have a capitol loss if he bought them a few months ago when gold was over $1,000/oz and was credited at the current value of gold.)</p><p>&nbsp;</p><p>All this raises another questio - How did the Real Estate Broker handle the Kruggerrands? </p><p>&nbsp;</p><p>Each state is different but every state has a Real Estate Commission of some sort. I held a real estate for a few years in Colorado and did everything except activate my license in Georgia. </p><p>&nbsp;</p><p>I can tell you that one of the things that Real Estate Commissions everywhere watch very, very carefully is how real estate agents and brokers handle money given to them for earnest money deposits and other deposits. The primary concern is that the money given to a RE agent or broker be kept safe and separate from the broker&#039;s money. In other words, money given to a broker by another party as a deposit cannot be co-mingled with the broker&#039;s money. This money must be kept in a separate bank account so it is safe and cannot be used by the broker. Brokers are audited regularly to ensure they are not co-mingling clients&#039; funds with their own.</p><p>&nbsp;</p><p>So how did the broker handle the Kruggerrand&#039;s given to her as an earnest money deposit? She cannot simply deposit them into her account. Did she convert them into cash and depost that money into the account? Or did she hold the Kruggerrands (maybe in a safe or safe deposit box) until they could be released to the buyer? </p><p>&nbsp;</p><p>This is an interesting scenario but it is probably one that many states&#039; Real Estate Commissions have foreseen. I&#039;m curious to learn how this was handled.[/QUOTE]</p><p><br /></p>

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