Posted on 08/15/2016 8:11:14 PM PDT by TheDandyMan
Hello all,
I was gifted a couple gold coins a few years ago -- just basic, 1 oz American Eagle coins, no special edition or date or anything like that. I kind of forgot I had them, but recently decided to sell one of them off to finance my conspicuous consumption of .22 ammo, and came a bit of a cropper, as our British cousins might put it. Simply put, aside from selling the thing at a pawn shop for pennies on the dollar, how are you supposed to sell the damn thing? What research I've done seems to indicate that most vendors will only buy coins that were bought from them in the first place, and others only deal when you've got 5-10+ coins to sell. Not to mention, many of these gold businesses have a strikingly shady aspect to them.
I hadn't imagined it would be this hard. To those FReepers who have experience with this sort of thing, how do you sell a coin for a number approaching the spot price of gold by weight?
Thanks in advance.
P.S. I'm perfectly willing to admit that I'm being a giant thicko, if that turns out to be the case, but again, my brief exploration of the subject seems to indicate that the seemingly simple act of selling a gold coin for it's weight value is more difficult than I might have imagined.
Here in ATL, there’s a monthly numismatic show where you could go and talk to multiple dealers gathered at the same location.
Do you need the money right away?
if not, auction is the way to go. Numismatic auction of course. If you need a couple names I have them.
Random coin dealers might not be the way to go. I have had some very bad experiences with coin dealers. I had one coin dealer offering me five times face value on Franklin silver half dollars while back home in Boston the going rate was fifteen times face value.
Correct. If you had purchased it yourself, you could knock off the purchase price, and only pay on the difference.
However, since you paid nothing, you're on the hook for the whole enchilada.
Bobalu is completely correct on this matter, TDM.
American Gold Eagles and American Silver Eagles will sell for more than a same-weight coin or bullion piece.
Coin dealer that deals in cash. There are plenty of them.
They should give you 96% of melt price. Ie the value of the gold at spot -4%.
If you go ebay, you have to pay commissions... And it’s potentially reported as income. Unless you have a cash basis for that gold, that’s a lot of percentage to eat.
Post an ad on www.armslist.com that you want to trade it for a gun, etc. — you might actually find someone who will pay you close to retail for it that way. Meet at a bank to make the transaction. If you’re in Texas, http://www.texasguntrader.com. Other states have gun websites. Look around.
Find a Chinese, Vietnamese or Indian restaurant in your town. Tell em you’ll only take cash.
"Correct. If you had purchased it yourself, you could knock off the purchase price, and only pay on the difference.
However, since you paid nothing, you're on the hook for the whole enchilada."
Apparently you're both rather confused on the tax laws:
I received some gold coins as a gift from my parents and then sold them a month later. Must I report it as a gain and if so where?Courtesy of: https://ttlc.intuit.com/questions/2642257-i-received-some-gold-coins-as-a-gift-from-my-parents-and-then-sold-them-a-month-later-must-i-report-it-as-a-gain-and-if-so-whereIn the case of a gift, the donor is responsible for reporting the gift; the recipient of a gift is not required to pay taxes on the gift. The annual gift tax exclusion for 2014 is $14,000 (same for 2013).
For more information, see IRS Estate and Gift Taxes.
The original purchase price would be what the giver not you paid for it.
So, if you received a $100 espresso machine as a wedding gift, and later sold it for $100 or less, there's nothing to report.
On the other hand, if you sold the espresso machine for more than $100, you'd only report the profit you made above the original $100 purchase price.
Interesting
Forgot about the "gift" aspect.
HOWEVER - what if the donor didn't report them as a gift? Will they be dragged into a mess [for not reporting] even though their total gift for that year was only the two gold coins [and obviously less than $14,000]?
Chinese Restaurant.... 10% fee vs 28% tax.
“HOWEVER - what if the donor didn’t report them as a gift? Will they be dragged into a mess [for not reporting] even though their total gift for that year was only the two gold coins [and obviously less than $14,000]?”
I don’t think so, since there’s an allowable tax-free amount to gift any individual, somewhere around that same $14,000. If the coin was somehow income from that year, it should be reported, theoretically speaking.
I’ve always been happy with my dealings with SOUTHERN COIN INVESTMENTS out of Atlanta. They are an online/catalog company and very reputable.
Remember that the spot price/melt value is just the value of the cold. Old gold coins have a collectors value and should always go above the melt value.
Or mugged.
QFT and ditto!! Since the OP wants .22 ammo, find the best price/availability and start dealing. Anybody in the guns and ammo business should generally be interested in precious metals being used for purchases.
This deserves further clarification.
If one inherits property through an estate, they receive a stepped up cost basis on the property. In other words, the basis for the new owner is the value of the property on the date of the decedent’s death. If the new owner subsequently sells the property, capital gains tax would be due on the net proceeds received above the stepped up cost basis amount.
Conversely, if one receives a gift of property while the donor is alive, the new owner takes the donor’s cost basis. In that case, if the new owner subsequently sells the property, capital gains tax would be due on the net proceeds received above the donor’s cost basis.
The issue of a gift tax is an entirely different topic from capital gains tax. It is correct that there is a $14,000 annual person-to-person exclusion before gift taxes come into play (to an unlimited number of people). However, each individual donor has approximately $5.45 million in lifetime gifting BEYOND the annual exclusion that can be used up before any gift tax is due via the donor.
Google for coin shows in your area.
A coin shop is the place to sell it.
If you do sell it, you will regret it.
Never take anything to a pawn shop. Go there to buy cheap tools you don’t worry about breaking or losing.
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