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Coin inheritance taxable?

 
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Canada
39 Posts
 Posted 01/15/2018  10:59 am Show Profile   Bookmark this topic Add enigmapaul to your friends list Get a Link to this Message
Hi Guys,

If one inherits a large coin collection and it is sold, are the proceeds supposed to be taxable by Canada Revenue Agency?

Thanks!
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Canada
4123 Posts
 Posted 01/15/2018  11:17 am  Show Profile   Bookmark this reply Add john100 to your friends list Get a Link to this Reply
Taxable by the giver or estate
New Member
Canada
39 Posts
 Posted 01/15/2018  11:27 am  Show Profile   Bookmark this reply Add enigmapaul to your friends list Get a Link to this Reply
john100, hmmm. He gave them to me (physically) over 10 years ago instead of actually putting them in his Will. So they have been my property for a long time. He just didn't want me to sell them until after he passed. I've never had them appraised and don't know what they are worth.

Was I supposed to claim them on my tax return?
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United States
29606 Posts
 Posted 01/15/2018  11:30 am  Show Profile   Bookmark this reply Add Coinfrog to your friends list Get a Link to this Reply
Don't know anything about Canadian law, but -



to the CCF!
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Canada
523 Posts
 Posted 01/15/2018  11:40 am  Show Profile   Bookmark this reply Add timnic44 to your friends list Get a Link to this Reply
If he gave them to you before he passed then I would say they were a gift and not an inheritance. Best thing to do is call CRA and ask them.
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Canada
2332 Posts
 Posted 01/15/2018  11:45 am  Show Profile   Check kuh_85's eBay Listings Check kuh_85's eCrater Listings Bookmark this reply Add kuh_85 to your friends list Get a Link to this Reply
I believe there are no tax consequences from the gift on your side. Your father might have had a responsability to pay tax on any deemed capital gain at the time of the gift. However, depending on how much he initially paid for the items there may not even have been any deemed capital gain in which case it's a moot point. https://www.taxtips.ca/personaltax/...ritances.htm
Edited by kuh_85
01/15/2018 11:46 am
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United States
62543 Posts
 Posted 01/15/2018  11:50 am  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply
You may want to check out our informative post regarding inherited coins. Just click on inherited.
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Canada
2332 Posts
 Posted 01/15/2018  11:50 am  Show Profile   Check kuh_85's eBay Listings Check kuh_85's eCrater Listings Bookmark this reply Add kuh_85 to your friends list Get a Link to this Reply
If you sell items of significant value then you may also be responsible for paying income tax on any positive difference between the value of the item(s) at the time they were gifted to you and the sale price. Also, if you sell enough to hit the $30k/year threshold you'll need to register for GST/HST.
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Canada
761 Posts
 Posted 01/15/2018  12:09 pm  Show Profile   Bookmark this reply Add punman to your friends list Get a Link to this Reply
What kuh_85 says makes sense although I am no accountant nor lawyer. My mom recently gave her coin collection (which used to be my dad's before he died) to us children because she was not interested.

I have catalogued what I received. Some I will keep to add to or upgrade my collection. What I sell as duplicates, I will track in case there are tax implications down the road or if I get questioned by the tax department.
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Canada
3686 Posts
 Posted 01/15/2018  1:53 pm  Show Profile   Bookmark this reply Add CC-Ottawa to your friends list Get a Link to this Reply
As others have pointed out, you described an inter-vivos gift not an inheritance. In general, Canada does not have 'inheritance taxes' as such, though that is not relevant to this case.

When the gift was made, there may have been a tax obligation for the gifter but not for you.

That said, you may be responsible for any capital gain on disposal earned in the 10+ years post receiving the gift. It sounds like you have not sold the collection yet so you have the advantage of mitigating any potential tax burden via tax planning.

All that said, this is an open forum and you should not rely on any opinions or advice here. Find a professional accountant if you have any doubts.

Edit to add: In case you were wondering, you are were not required to report the gift to CRA on your tax return for the year in which you received the gift.

https://www.canada.ca/en/revenue-ag...t-taxed.html
Edited by CC-Ottawa
01/15/2018 1:57 pm
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Canada
1046 Posts
 Posted 01/15/2018  3:47 pm  Show Profile   Bookmark this reply Add torgemco to your friends list Get a Link to this Reply
Ef78iCX1kdA

*** Edited by Staff to add YouTube tags. [youtube][/youtube] Please use them in the future. We prefer embedded video. ***

hope this helps a bit..
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Canada
871 Posts
 Posted 01/15/2018  3:54 pm  Show Profile   Bookmark this reply Add purelywasted to your friends list Get a Link to this Reply
Coins are considered to be "listed personal property" for tax purposes

https://www.canada.ca/en/revenue-ag...roperty.html

If you sell $1000 or less a year it does not need to be reported, there is some arguments as to whether it is $1000 or less per year or per transaction. I have not see a definitive decision, but I am sure it is out there somewhere.
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Canada
871 Posts
 Posted 01/15/2018  4:05 pm  Show Profile   Bookmark this reply Add purelywasted to your friends list Get a Link to this Reply
Here is one more link for you, I have not seen the offical CRA bulletin on set vs. per piece. The nice thing about Listed Personal Property (LPP) is that you can take capital losses to offset the gains of other LPP sales.

But it looks like most coins can be sold tax free, assuming you are not making a business of it.

http://www.advisor.ca/tax/tax-news/...ctors-211465
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Canada
1684 Posts
 Posted 01/15/2018  5:55 pm  Show Profile   Bookmark this reply Add ace_ftw to your friends list Get a Link to this Reply
also note he said he was gifted these, so there was no sale, no money passing hands, therefore no tax either.
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Australia
14511 Posts
 Posted 01/15/2018  6:53 pm  Show Profile   Bookmark this reply Add sel_69l to your friends list Get a Link to this Reply
My collection, which has been put together over five decades, is quite valuable.

Most of the collection existed long before any inheritance taxes relating to coins became Law.
I have no idea these days as to how to identify which coins are subject to inheritance tax, and which ones are not,
let alone how to apply CPI inflation value adjustment factors to acquisition dates, in order to determine how much capital gains inheritance tax should be paid.

The only reasonable thing I can do now, is to give my collection to my kids bit by bit. I have been doing this over the last ten years.
Hopefully, I will not possess any coins when I die.
They both wish to extend those parts of the collection they are interested in.

Sometime, in the decades into the future, long after I kick the bucket, they can dispose the collection bit by bit, if they wish to, probably by public auction.
That is their choice.
Legally, they are not required to pay any tax until each item is sold.

--------------------------------------------------------------------------------------------------------------------------------------------------

For most of us, no purchase records are kept.
If you buy hundreds of coins (maybe thousands) for only a few dollars each, over a period of decades, how do the Tax authorities determine how much tax should be paid when they are disposed of?
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Canada
2502 Posts
 Posted 01/15/2018  7:35 pm  Show Profile   Bookmark this reply Add MoneyPenney to your friends list Get a Link to this Reply

Quote:
also note he said he was gifted these, so there was no sale, no money passing hands, therefore no tax either.


Exactly, you hit the nail on the head. No one besides you seem to grasp this simple concept.

Since the OP was "given" the coins as a gift, there is absolutely no tax consequences.

To state the obvious, inheritance is from a dead person. The OP's father gave the coins to his son while he was alive.
Edited by MoneyPenney
01/15/2018 7:41 pm
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