I was wondering If you find a little chest buried that has some gold coins inside and you want to declare it how much will the goverment take, you know if they take most of it or they just collect a tax, because in other countries the goverment takes almost everything declaring it nation's property and they just give you a tiny percent of it, so I was wondering if the same happens here un USA, how would it work.
2007-10-19 05:08:46 · 8 answers · asked by pulguita picosa 5 in Business & Finance ➔ Taxes ➔ United States
I was wondering because they always do that in the movies, they find it and become rich, but if you think about it the moment you start to cash the coins and spend it the questions are going to start, and the IRS will get its nose there sooner or later or what would you do to avoid it
2007-10-19 05:29:42 · update #1
Unlike the baseball "find" earlier this year, the value of gold coins is easily assessed. As such the find is fully taxable as ordinary income in the year of the find. Claim the value on Line 21 of your Form 1040 tax return. The actual tax will depend upon the value, your other income, your filing status, exemptions, deductions, etc. It could be as high as 35% for Federal income taxes. If your state levies an income tax, they'll want their cut as well.
As for the clowns who say you shouldn't claim it, please ignore them! If you found one or two coins you'd probably get away with it easily enough. However a life-changing find could easily trigger a "lifestyle audit" by the IRS. They'd quickly figure out that you were living beyond your means and that will trigger taxes, penalties, interest and in the worst case, criminal prosecution. Not worth the risk, IMHO.
2007-10-19 05:38:32 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
It depends on what it is you found and where you found it. If the treasure is small it would probably be ignored. If it cannot be hidden the courts will test the circumstances to determine ownership.
When Richard Steinmetz tried to auction off the Alabama bell, a relic of the CSS Alabama and one which he had own for years; the federal marshals knock on his door with a warrant to collect the bell for the Federal government. when he protested he was told: The Navy doesn't abandon warships. All of them, even rusting confederate ones, belong to the United States government.
2007-10-19 12:29:01 · answer #2 · answered by Petwanel 3 · 1⤊ 0⤋
First off, I suggest NEVER telling the government about the gold coins.
2) Like you said, any country has the right to any money or property (damn _4$74.P$!) and they'll most likely do something to get the gold.
3) Delete this question sooner than later.
2007-10-19 12:12:51 · answer #3 · answered by Anonymous · 1⤊ 1⤋
There is a name for this, it is "treaure trove." If you find a treasure trove, it is taxable income. Enter on Line 21 as other income. No SS or Medicare tax, but they will take income tax at the rate determined by your total taxable income.
2007-10-19 16:08:48 · answer #4 · answered by ninasgramma 7 · 1⤊ 0⤋
i guess you would just figure it as part of income. it would be taxed along with the rest of your income. no i bet it would be taxed like a one time gain. however they treat gambling winnings is how they would treat that i betcha.
2007-10-19 12:19:20 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Declare it? Is this some kind of joke.
2007-10-19 12:16:24 · answer #6 · answered by Anonymous · 1⤊ 1⤋
Why in the world would you declare it?
2007-10-19 12:11:49 · answer #7 · answered by nicky 2 · 1⤊ 1⤋
If you just found it, you don't owe any tax on the find. If you sell them, you'd pay tax then.
2007-10-19 12:29:08 · answer #8 · answered by Judy 7 · 2⤊ 1⤋