What is the best way to track and value a newly inherited coin collection?

rickmjones

My dad just gave me a substantial collection and he has the coins in suitcases. I have no experience with coin collections. I have listed the PCGS inventory on the website but most of the coins are in books and plastic sleeves are unrated. Should I just do an excel spreadsheet and hunt and peck for the values and info? I need to get my arms around this pretty substantial collection. Any advice is welcome.

MsMorrisine

suitcases is plural

that is a lot

if you plan on keeping it, putting it in an excel spreadsheet is a good idea

is a lot of it 1965 and newer or older than that?

yosclimber

Get a copy of the "Red Book".
https://www.ebay.com/itm/265132971595
Actually your dad probably has a copy, ask him.
This has basic info on grading and values.
It is helpful for locating the more valuable coins.
Often the overall value is largely determined by just a few coins.

291fifth

Step One:

Buy a copy of the current edition of the Red Book (The Guide Book of United States Coins). Read it from cover to cover.

Step Two:

Learn to grade by using information you can find on the PCGS website.

Step Three:

If it appears that you have valuable coins in the collection post photos of some them on this forum and ask for comments from the forum participants. Be selective. Don't post photos of coins that are damaged, cleaned or have low Red Book values.

Important: DON'T CLEAN ANYTHING!

rickmjones

Thank you, ordered the Red Book already. I think he has been using E Bay to buy and sell, but he is not very active at it. He has 10 or so complete collections he says.

USSID17

Like MsMorrisine said. If you plan on keeping the collection and inventorying it with values, I use CoinManage.

https://www.libertystreet.com/Coin-Collecting-Software.htm?gclid=Cj0KCQjw7pKFBhDUARIsAFUoMDb4WV1sSGrjCsrXRy8Ek7P9scMzYI-HUHgCfC3vtbD9IJePPVUcw3IaAvajEALw_wcB

derryb

Was it a gift or an inheritance?

For tax purposes you will need a basis (cost) for each coin. The good news is that if it was inherited, the basis gets reset at the time of inheritance to the current value of each item. Assuming dad paid much less for the coins this is a good thing for you. Using your "adjusted" basis, you will see less profit at time of sale. It is important now to document the new basis while "value at time of inheritance" is still available.

Whether a gift or an inheritance you need to document a "cost" for each coin. You will need it in the tax year that you sell each coin.

TomB

Many of us simply build our own Excel spreadsheets.

derryb

@TomB said:
Many of us simply build our own Excel spreadsheets.

at least those of us fortunate enough to know how to use it. It is not very forgiving with formula mistakes, save your work often.

MsMorrisine

The common stuff from the 70s can be last

You’ll notice in the red book there are value ranges. The difference is in condition.

For the older stuff feel free to post pictures.

For the newer stuff, pick out some of the nicer looking stuff and post pics.

ricko

You have a large project ahead of you. Best to start by categorizing the collection... For example, Lincoln cent albums, Mercury dime albums, Type sets etc. Slabbed coins vs. raw coins.....Start slow and do not let the size of the project discourage you. Ask questions here as well. Good luck, Cheers, RickO

rickmjones

I will find out tonight. Heading to his house to gather it up. I think it's 5 or 6 suitcases and he's been collecting for decades so I believe at least half are pre-1965.

rickmjones

Thanks for all the good input. I have strong Excel skills, so that is easy for me. But the Coin Manage Software looks pretty slick. My issue is time, He has so many coins, and I do not have tons of time to do the data input. I'll just have to chip away at it I guess.

derryb

Our buy, sell, trade forum here is a good venue.

Cougar1978

I would set them up on an excel sheet col for quan / country / date - mm/ descr/ cost / grade / MV per CW or Krause, etc. plus ASW / AGW for Calc BV. I would assume your cost is zero since inheritance.

It will take some research on your part. Is some of this cupronickel junk? Coin shops prolly will offer 90 pct BV on bullion material or 60 pct bid on quality material like slabs. Then wholesale the slabs at shows 90-95 pct bid / 50 pct markup. They gotta make the overhead cost somewhere.

GRANDAM

I believe the cost basis on inheritance is the value of the items at the time of inheritance. Since your father is still alive I believe it is considered as a gift and not inheritance.

Disclaimer,,,,, I am not a lawyer,,,,, I just pretend to be one on a Coin Forum.

OPA

@GRANDAM said:
I believe the cost basis on inheritance is the value of the items at the time of inheritance. Since your father is still alive I believe it is considered as a gift and not inheritance.

Disclaimer,,,,, I am not a lawyer,,,,, I just pretend to be one on a Coin Forum.

It could also be considered an advance of his inheritance. As such, not subject to a gift tax.

GRANDAM

You can also be gifted up to $15,000 per year tax free. Multiple people can gift to you as well.

retirednow

Use the opportunity to sit with your dad and do it together... pick his knowledge about the collection and talk about his time collecting. It is nice you are giving the opportunity to transfere the collection

rickmjones

Thanks all for the good input. Thought provoking stuff.

derryb

@OPA said:

It could also be considered an advance of his inheritance. As such, not subject to a gift tax.

I do not know for sure, but I believe tax code does not recognize an "advance of inheritance" when avoiding a gift tax.

@GRANDAM said:
You can also be gifted up to $15,000 per year tax free. Multiple people can gift to you as well.

It has been reported that Mitt Romney and his wife have taken advantage of this tax break every year for each of their kids. While the gift remains taxable to the parents as income it is not taxable income to the recipient. It is a good way to start transferring money to your heirs.