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I inherited a considerable number of old 25 cent coins, pre-1965 vintage so they have much more value in silver content. I don’t want to leave the coins to my kids to deal with but is now a good time to sell for cash, trade for gold or silver 1 oz. coins or bars. Trying to decide if this current trend continues or if the next move is more downward. Any suggestions???
I would sell all of them , and put the proceeds in the appropriate location. if you won’t need the money for ten years or more, use the VT, a few years to ten, intermediate treasuries, several months to a couple years, short treasury, less than that 3,6,12 month treasury, etc.
Gold,silver, etc., are not needed. The storage and insurance costs, the inferior returns to stocks, nah.
Much better to invest in the nearly 10,000 global stocks of the vt, or rock solid treasuries. Do not use it to invest in your cousin’s” cannot miss” start up.
Thanks all… I have to admit my uncertaintity but I’m leaniing towards Jonathan’s pov… but first, I need to verify the DOD of my Dad from whom I inherited the coins… thanks again, i appreciate the feedback……
I also have some inherited coins to sell, <$20,000. Do I pay taxes on the sale?
When you inherited the coins their tax basis were adjusted (a step up or down from the cost basis of the descendent) to their fair market value (FMV) on the date of death (DOD) of the decedent you inherited them from. If you just recently inherited the coins I would generally expect the sale price would be approximately represent the DOD FMV. You would have a tax return reporting requirement for the tax year of sale but would likely have neither a taxable gain or loss.
In the infrequent event that the decedent’s estate was required to file an estate tax return (a federal form 706) the coins should have been listed as an asset of the estate and you, as the beneficiary of the estate, should have been advised by the executor of the estate of the value as listed on the estate return. DOD held assets that are omitted in error from a federal estate return may be a tax problem as the IRS could take the position that their tax value is zero.
When you sell such inherited coins the usual reporting is that the sale is reported as a long term capital asset sale on your schedule D and Form 8949 in the year of sale regardless of the decedent’s actual holding period.
If you plan to hold the coins long term you may want to consider getting a formal written appraisal as of the decedent’s DOD to establish your tax basis for a future sale if you plan to ever sell the inherited coins.
See IRS Pub 550 for details.
Best, Bill
When my dad died 5 years ago he had about in silver coins that were worth around $8000 – less than half what he paid for them several years before. I sold all but a sleeve of them, mainly because I didn’t want to deal with moving them across the country. Last year I sold the rest for almost twice what they were worth in 2019. No regrets because it was the easiest and it was “found” money. To be honest, if I had bought them I probably wouldn’t have sold them at such a loss but since they were inherited it didn’t feel like “real” money. (And for the record I would NEVER speculate on the silver market. A good friend lost hundreds of thousands during the Hunt debacle of the 1980s.)