moxking
Quote:
Without doing so, your heirs stand the chance of losing significantly either because they sell too low, or don't know how to determine prices paid and expenses incurred in creating the collection. If you don't keep such a listing and advice your executor on those details, I can assure you that even if the executor is familiar with coins, they will probably throw in the towel on trying to work the numbers.
All those records mean nothing when somebody dies. The heirs basis steps up or down to fair market value.
https://en.wikipedia.org/wiki/Stepped-up_basisThis is why if you have capitol losses, you better use them before you die.
Buffalow
Quote:Suppose you die and your grown child inherits your lifelong coin collection. For tax purposes, a "step-up in valuation" places it at current value with no tax consequence to your gain on original investment. The heir is only taxed on any future gains after this point in time. Be sure to keep a
Red Book with the collection along with a note explaining its significance; stress the importance of transaction records and maintaining annual Red Books for any year in which there are pieces added to or sold from the collection. You may also wish to express that you desire this gift to become a multi-generational legacy, if applicable.
You're correct that a heirs basis steps up to current market value, but I don't see any reason that purchase/sale records are even relevant at that point. If the estate is large enough that estate taxes are owed, the executor should use the grey sheet bid prices to determine value. On the other hand, if the estate is small enough that taxes are now owed, then a retail price guide like the
Red Book should be used because it gives the coins a higher basis for their new owner. The higher the basis, the less taxes will have to be paid in the future (or the bigger the loss).
Edited by Bret
08/28/2015 4:51 pm
First Page
Posted 08/20/2015 10:45 pm
