Today TaxMama hears from Richard in the TaxQuips Forum who tells us. “My family is selling my father’s baseball card collection. We are expecting to receive approximately $20,000. If the buyer writes me a check and I deposit it into my account; then I write a check for the amount and give it to my mother, will I get hit with the taxes as income?”
I don’t know. You may not have a tax issue at all, believe it or not.
What is the tax basis for those cards? When your father died, were the cards appraised as of the date of death? If not, and they are that valuable – go out and get a formal, written appraisal as of the date of the death.
And yes, if you deposit the money in your account – IRS will look to you for the taxes. However, if the card collection was worth nearly $20,000 when your father died, there won’t be much of a tax, will there?
Also, bear in mind, you need to look to who owns the cards. If your mother doesn’t want to deposit the money due to Medicaid issues, please be careful. Consult someone to be sure your mother’s interests are protected, not jeopardized.
And remember, you can find answers to all kinds of questions about selling collectibles, inheritances, and other tax issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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