Tax basis

SillyAG35

I have some silver which I inherited. I'm thinking of selling some, how do I figure a cost basis for tax purposes?

1630Boston

I believe it would be the step-up basis, the value on the date that you inherited it but I am not a tax pro.
Others here know more than I do.

https://www.irs.gov/publications/p551

https://learn.apmex.com/answers/how-are-inherited-coins-valued-for-tax-purposes/

Glen2022

No taxes if you spend it for face value! LOL

derryb

step up basis is value at time of inheritance. Sell is soon thereafter and face very little capital gains tax.

taxmad

@SillyAG35 said:
I have some silver which I inherited. I'm thinking of selling some, how do I figure a cost basis for tax purposes?

Not sure if this was recently inherited, or you have held it for months/years. Basis on inherited assets are the FMV at the date of death. If the asset has depreciated, you can assign a value 6 months after the date of death. If you use the 6-month valuation date, I believe you have to use that valuation date for all inherited assets.

jmski52

step up basis is value at time of inheritance. Sell is soon thereafter and face very little capital gains tax

Cap gains on bullion are indeed nasty, but it might be prudent to hold onto the metals if you still see the market rising.

johnny9434

@Glen2022 said:
No taxes if you spend it for face value! LOL

And the penalty for it totally sucks

derryb

@jmski52 said:
step up basis is value at time of inheritance. Sell is soon thereafter and face very little capital gains tax

Cap gains on bullion are indeed nasty, but it might be prudent to hold onto the metals if you still see the market rising.

If you do hold them, be sure to document their value at time of inheritance, it wil be your forever "cost."

Bochiman

Most people wouldn't say anything.
And, depending on how much silver you have, it may not even be a blip.

Now, if thousands of ounces were left, and you sold it all at once, there would likely be a write-up by the shop and it may show up. But if you had 10 ounces? Even at $100+/oz, it wouldn't show up

taxmad

@Bochiman said:
Most people wouldn't say anything.
And, depending on how much silver you have, it may not even be a blip.

If one decides not to report the gains, then do not deposit the money in any bank account. That money goes into your tank, pantry, wardrobe or experiences while on vacation.

MrEureka

If the inheritance is not documented at the time of inheritance, wouldn’t the tax basis be zero?

derryb

probate documents itemize all assets of an estate

rte592

@derryb said:
probate documents itemize all assets of an estate

Provided there are documents.
What inheritance
What silver
What sale
What?

derryb

if there's no will or court order there is no inheritance. If it's a lot of money go the inheritance route so you can get new basis. A lot of money has to go throught the banks and you will never hide the gains from the tax man.