Here is an excellent video explaining the legal requirements of reporting GAINS when selling precious metals. It discusses the "loopholes" of no 1099, small gains, exempt coins, cash sales, etc.
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Quote: I believe the cost basis is the FMV when it is received.
My understanding is that a "step up" basis to FMV is only when you receive the metal (or other capital asset) as an inheritance from someone who has passed away. If you receive it as gift from a living person, then you "inherit" their cost basis as well and there is no "step up".
Probably true, and usually you never have to worry about how much the sweater you got last Christmas cost.
But, when it comes to gifts that are capital assets that may eventually be sold, you can't determine an accurate adjusted basis without it. If anyone is really interested in this, here's a link to a good discussion about the capital gains tax rules on gifts - https://legalclarity.org/what-are-t...es-on-gifts/
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Posted 02/01/2026 11:27 am
