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<p>[QUOTE=&quot;ldhair, post: 747015, member: 11540&quot;]Just a few thoughts for those that plan for the future.</p><p><br /></p><p>Save every receipt. If you don&#039;t have it and you sell it, you owe taxes on anything above face value. Ain&#039;t that fun. This can be a real problem with a large collection. </p><p><br /></p><p>I&#039;m sure many of you know this but, maybe some don&#039;t. </p><p>What you have in a coin and can prove is called the &quot;basis&quot;. That figure is the cost of the coin plus postage, insurance and grading fees, if you had it graded. If you sell, you owe taxes on anything above that basis figure. You do get to add the cost of selling it to the basis. </p><p><br /></p><p>If you give it to someone, they own it at your basis and will pay taxes the same as if you had sold it. I&#039;m not sure if they need receipts to prove the basis. There is a thing called &quot;gifting&quot;, but that&#039;s something to talk with the CPA about. Gifting may allow them to own the coins at market value. That&#039;s cool.</p><p><br /></p><p>If you pass the coins by way of will, they will own them at market value.</p><p>They call this a &quot;stepped up&quot; basis. There are many long term collectors that don&#039;t wish to sell because of the taxes (cap gains). I think long term cap gains are at 15%. Lots of property pass by will because of this issue.</p><p>The new owner will only pay cap gains of what sells above market value and can claim a loss on what sells below market, but there are limits to losses.</p><p>I&#039;m thinking the max loss figure is $3000 but the balance can carry to future tax years.</p><p><br /></p><p>Please don&#039;t trust my words. Talk with your CPA. You will be dealing with both state and federal tax laws. </p><p><br /></p><p>All of this is part of a planned exit strategy. Everyone needs to have a plan.</p><p>It&#039;s really all just money management.</p><p><br /></p><p>Edit to add. The 15% figure I used is wrong. Coins get taxed at 28%. I told you not to trust me.<img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>

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