Discussion:Found gold coins in primary residence
From TaxAlmanac
| Revision as of 21:53, 6 November 2009 Wjalverson (Talk | contribs) (New Discussion) ← Previous diff |
Revision as of 22:11, 6 November 2009 Jdugancpa (Talk | contribs) (Does your client) Next diff → |
||
| Line 13: | Line 13: | ||
| Thank you}} | Thank you}} | ||
| + | |||
| + | {{ForumReplyPost|UserID=Jdugancpa|Date=6 November 2009|Text=Does your client now have "undisputed possession"? What if seller now remembers he stuck 600 "cold coins" (sic)behind the kitchen sink cupboard and knocks on your door asking if he can look behind the cupboard for the pocket change he hid there for a rainy day. Does he have a valid claim? Does your state have an "unclaimed property" statute that could result in your client having an obligation to turn the coins over to the state? (Bummer, client was complaining about paying 1/3rd of her finding to the government, when she might have to turn it all over!) | ||
| + | |||
| + | Absent that, I will wait to see if you can find support to allocated a portion of the purchase price of the house to the coins. Can you hold a straight face while you make that argument to the IRS?}} | ||
Revision as of 22:11, 6 November 2009
Discussion Forum Index --> Basic Tax Questions --> Found gold coins in primary residence
Discussion Forum Index --> Tax Questions --> Found gold coins in primary residence
Wjalverson (talk|edits) said: | 6 November 2009 |
| A client found approximately 600 US cold coins dated from the early 1900s. Each coin is currently worth, by weight, approximately $250. The coins were hidden behind a cabinet in the client's primary residence that was purchased 6 years ago. The coins were uncovered during a kitchen remodeling. Under Reg 1.61-14 my client is required to include this treasure trove in her gross income.
My questions: a) Is it reasonable to allocate a portion of the basis of the residence to the coins? If yes, how would it be calculated? b) Are 100% of the value of the coins recognized currently, or only recognized when sold? c) If the answer to b) is recognized currently, could the face value ($20) of each coin be used as the value since the current value based upon weight would not be recognized until sold? I've done a bit of research herein and through Checkpoint, but I'm unable to come up with more definitive answers. Thank you | |
| 6 November 2009 | |
| Does your client now have "undisputed possession"? What if seller now remembers he stuck 600 "cold coins" (sic)behind the kitchen sink cupboard and knocks on your door asking if he can look behind the cupboard for the pocket change he hid there for a rainy day. Does he have a valid claim? Does your state have an "unclaimed property" statute that could result in your client having an obligation to turn the coins over to the state? (Bummer, client was complaining about paying 1/3rd of her finding to the government, when she might have to turn it all over!)
Absent that, I will wait to see if you can find support to allocated a portion of the purchase price of the house to the coins. Can you hold a straight face while you make that argument to the IRS? | |
