Message:

<p>[QUOTE=&quot;Publius2, post: 8141897, member: 105571&quot;]This is a very generalized explanation and there may be some rare or unusual exceptions but I think it&#039;s a pretty universal explanation for how things work most often.&nbsp; Consult your tax advisor!</p><p><br /></p><p>For the purposes of calculating the capital gain and the subsequent capital gains tax owed, it doesn&#039;t matter what the coins are or when they were purchased. This also covers PMs but note that with PMs there are some exceptions and special rules that don&#039;t exist with collectables.&nbsp; Here&#039;s what matters:</p><p><br /></p><p>Original purchase price of coin, also called the &quot;Basis Cost&quot;.</p><p>The sale price of the coin, also called &quot;Realised Price&quot;.</p><p><br /></p><p>Subtract the &quot;Basis Cost&quot; from the &quot;Realized Price&quot; and the difference is the Capital Gain.&nbsp; If the Capital Gain is a positive number, multiply the Capital Gain by 0.28 (28%) and that is the Capital Gains Tax owed.</p><p><br /></p><p>If the Capital Gain is a negative number or zero, then there is no Capital Gain and the Capital Gains Tax owed is zero.</p><p><br /></p><p>Note that this is a calculation performed for each individual coin, not for the collection <i>in toto</i>.</p><p><br /></p><p>Now, if you have dated receipts for the original purchase, then those are pretty much irrefutable evidence to support your claim for the validity of the &quot;Basis Cost&quot;.&nbsp; If you don&#039;t have the original receipts but have a record-keeping log of the purchase (who, when and how much), that is better than nothing but clearly not as credible as original receipts.&nbsp; If you don&#039;t have receipts or a log, then you are pretty much at the mercy of the IRS in the sense of how willing they are to accept general market evidence of the coin&#039;s value from the time when it was purchased. IRS would also have to accept your word of the date of purchase which is another hurdle.&nbsp; In the worst case from the taxpayer&#039;s standpoint is when the IRS says your basis cost is the coin&#039;s value when you sold it.&nbsp; In that worst-case scenario, your calculated Capital Gains would 100% of your sales price.</p><p><br /></p><p>The above only describes the case where the coin&#039;s original purchaser (or the purchaser&#039;s joint property partner) is selling the coins.&nbsp; If the coins are inherited, then they should be placed into the probated estate and an estimate of their value provided by a recognized authority.&nbsp; This new value then becomes the new &quot;Basis&quot;, replacing the original purchase price.&nbsp; This is particularly desirable when there are no original purchase price receipts.&nbsp; If you don&#039;t probate them and establish this new &quot;Basis&quot;, you open yourself up to potential problems.&nbsp; </p><p><br /></p><p>I don&#039;t know how it is in other states, but in Florida you will pay 3% of the probated property value in fees to the probate attorney.&nbsp;&nbsp; That is a cost of doing business but folks that think they are pulling a fast one without knowing what they are doing can sometimes get a nasty surprise down the line.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in