Do coins have a stepped up basis at death of owner?

bidask

If so, how does the beneficiary price the coin? ( wholesale or retail )

BECOKA

Edited, sorry misunderstood the question.

ziggy29

Yes, inherited collectibles will generally receive a step up in basis to the FMV at the time of death. That's good if the entire estate value is below the estate tax threshold; not necessarily so good if the estate is larger and subject to estate taxes.

MrEureka

I have instructed my family to have Derek do the numismatic appraisal for my estate.

bidask

I suppose I could ask my CPA this but he is gone for the evening. I was just curious. For example, if a person buys xyz stock at $25 and on the date of death the same stock is trading at $35, the heirs cost basis is $35. Does the same apply to a coin, for example, that say was bought for $500 and on the date of death had a value of $1000 retail or $850 wholesale? Would the coin be valued at retail ( higher basis) or wholesale (lower basis) to the heir? Does the IRS allow this for coins?

PerryHall

<< <i>I have instructed my family to have Derek do the numismatic appraisal for my estate >>



..........for tax declaration purposes.

BrianKuszmar

Having done hundreds of Estate appraisals the proper amount to list the coins for estate purposes would be the current market value which is based on the current wholesale value. Full time Coin Dealer/Appraiser with experience in such matters should perform appraisals to assure accurate prices and avoid any potential problems.

Depending on what is involved and where you are located and the quality of the report, you can expect to pay from $50 to $250 per hour, which if there is ever a problem, will be worth every cent.


Much regards
Brian Kuszmar
Second generation Coin Dealer