Antique Coins

Today TaxMama hears from Dallas in the Tax Quips Forum, with a disturbing question. “My mother has been collecting antique gold coins for years now. She got a call from one of her dealers telling that at the first of the year, the tax laws for these coins will change.  They will no longer be considered antique coins, they are now considered to be gold bullion. If she sells them she would have to pay a 39% capital gains tax on them. Have you heard of this?”

 

 Hi Dallas,

Sounds like a pressure sales pitch to me. I haven’t heard anything about this.

Talk to the fellow yourself and have him give you a specific citation in the law, about what SPECIFICALLY is changing.

I’ll look it up to see if he’s making any sense – or just trying to pressure your mother into selling her collection cheaply.

The only thing I know about is that the dealers are now required to issue 1099s to the sellers when sales are $600 or more in a year. This ensures that IRS is notified about the sales and the seller is forced to report the transactions – where they were not reporting these profits on their tax returns in the past. There is nothing about reporting the sale as bullion sales, instead of as collectibles.

Keep protecting her. Jerks prey on older people who they think can be charmed simply because they pay attention to that senior. In fact, here’s an article about aggressive sales tactics by one gold dealer.

So YOU continue the conversation – and encourage your mother not to speak with him again AT ALL until you have cleared him and his information.

And remember, you can find answers to all kinds of questions about protecting your parents from financial predators and other tax issues, free. Where? Where else? At www.TaxMama.com.

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