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<p>[QUOTE=&quot;Publius2, post: 7486628, member: 105571&quot;]For those with valuable coin collections and that have an interest in estate planning, there is a proposal floating about Congress to eliminate the &quot;new basis value&quot; feature in inheritance valuations.&nbsp; With this Congress and this Administration there is a fairly high prospect of some version of this becoming law.&nbsp; What this would mean for coin collectors and everyone else with inheritance subject to capital gains, maybe including real estate is:</p><p><br /></p><p>Say you inherited a coin collection worth $100,000 at current valuations per the appraisal.&nbsp; Under the existing tax law, that $100,000 appraisal would be the &quot;new basis value&quot; and when you sold the coins, any capital gains tax would be based on the difference between the &quot;new basis value&quot; and the sales price.&nbsp; So, let&#039;s say your ancestor bought the coins for $50,000 and you sold them for $100,000.&nbsp; The capital gains tax would be based upon a $50,000 gain.</p><p><br /></p><p>Under the proposals being floated, you would not be allowed to appraise the coins at a new basis value, you would have to pay capital gains upon sale between the original cost of the coins to your ancestor and the sales price upon your sale.&nbsp; If you don&#039;t have the original costs in a form that is acceptable to the IRS, then they would value the taxable capital gains in the worst possible manner to you.&nbsp; So, under the worst case condition, the face value of your coins is $200 which is what the IRS has now determined is the basis value.&nbsp; Now you owe capital gains based upon the difference between the basis and the sale price, in this case $100,000 minus $200 equals tax owed on $99,800 instead of $50,000 if you had had the receipts.</p><p><br /></p><p>You can have a yuck about cheating the state our of their sales tax and indulge in fantasies that because you have a will your estate will not have to go through probate, but for anybody that has anything of value, you should be aware of the implications for your heirs.</p><p><br /></p><p>Get and keep your receipts![/QUOTE]</p><p><br /></p>

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