Question and opinions wanted please read.

Coin Finder · May 21, 2018 7:01AM

I have been asked to sell a coin stash from a divorced person. The divorce is final, the person now owns the coins outright....

How do I sell these coin as a favor to this person who knows nothing about coins and not have tax implications on the sales?

How do I set expectations for this person in what they will bring versus what they are "valued" out

The coins are "valued" at over $10,000 total..

THanks

Boosibri · May 21, 2018 7:05AM

I would work with a respected dealer, perhaps on these boards to inventory and value the coins so as to not create a personal issue between the person you are helping and yourself. Perceived value and market value along with the frictional costs of selling can be a surprise to many folks.

If you are not receiving any income then I doubt that you would incur any tax implications . I would just keep records of any money which inflows which pass through your accounts and then the corresponding outflow to the consignor.

JBK · May 21, 2018 7:13AM

@Boosibri said:
I would work with a respected dealer, perhaps on these boards to inventory and value the coins so as to not create a personal issue between the person you are helping and yourself. Perceived value and market value along with the frictional costs of selling can be a surprise to many folks.

This is the big challenge.

drwstr123 · May 21, 2018 7:13AM

I would have the person set up an eBay and Paypal account. Sell the items and handle the shipping. Then deposit the returns to their bank. All with meticulous documentation, of course.

BlindedByEgo · May 21, 2018 8:30AM

Can you say more about what comprises the collection?

Smudge · May 21, 2018 8:48AM

Who "valued" them? Remember no good deed goes unpunished.

YQQ · May 21, 2018 8:48AM

Have a well known and respected dealer or auction house buy the coins from the owner. You will get some kind of finders fee from selling party.
Clean, effective and a perfect solution.
A few years back I hade a very similar situation after a death. The widow had no Idea about coins or where to go so she would not be ripped off by some greedy local dealer. However, a large US auction house accommodated her all the way, and eventually sold the whole lot by piece meal over 6 months. (overall value more than 1/2 mill)
In this case, I received a token finders fee from the widow for finding a buyer in form of a few rare coins and another small fee from the auction house.
It was all clean and absolutely no problems. AND, very little work.

ChrisH821 · May 21, 2018 8:55AM

I would find a PNG dealer. They have strict requirements and a code of ethics they must follow.
https://png.memberclicks.net/find-a-png-dealer

TomB · May 21, 2018 9:41AM

I would suggest to help the person by guiding them to information and/or making introductions. However, I would not do anything illegal to avoid possible tax liabilities and would not have funds made out to my name if doing this for someone else. There could be far more work here than the average person realizes and the way the first post is written makes me think this has a very good chance of not going smoothly.

Good luck.

Unknown · May 21, 2018 11:04AM

This content has been removed.

ColonelJessup · May 21, 2018 8:33PM

My lifetime of moral ambiguity has educated me in various meaning of the word "stash". Whose word is that? From before or after the divorce? Paperwork from the executor for inventory valuation would also establish clear title.

Your position in this situation offers you the chance to make a few hundred bucks max to do someone a favor that you might as easily do for free as long as you could be assured, and assure your client, that s/he is being treated fairly.

Refining @YQQ's concept. The coins get sent to Great Collections for grading and sale. Ian pays her directly. You do or don't have an gentleman's agreement with the seller that you get 5% of the proceeds.

DMWJR · May 21, 2018 9:03PM

Tell them to get a CPA or qualified attorney to advise them on basis, to set expectations. Content will determine the venue for sale recommendation. Just don't sell them yourself

BruceS · May 21, 2018 9:26PM

Help them set up an eBay account. school them on listing auction style for 7 to 10 days each. And agree apon a small percentage of the overall sale for your time. Let the market decide price.

If they are all raw and worth grading that's another story, you may get the cherry pickers out and bidding strong with good picks, or send them in and get current market on fresh graded stuff. I guess it all depends on what we are talking about as far as inventory.
We could help more with more info.

Justacommeman · May 21, 2018 9:33PM

Unless this is a VERY close friend I would just give him the names of a few dealers/GC if the material is suitable. If going the Ebay route I would give this to Jeremy or someone like him to disperse of. No need to take this on yourself

M

Timbuk3 · May 21, 2018 9:51PM

Good luck !!!

ColonelJessup · May 21, 2018 10:21PM

After 5000+ posts, you know enough of us know enough about this that

1) with or without an inventory of this grouping, just a very fuzzy $10K
2) not knowing if any silver or gold may be part of the value
3) or slabbed or raw
4) or maybe just knowing there are fewer than 100 total 2001-2013 proof sets to ship.

there's very little more anyone could add that would help you and your friend.

From a business standpoint, considering transaction costs and simplicity, this deal is still going to be pretty marginal for everybody.

This cynical Buddhist suggests that you minimize your appropriate karmic suffering by getting the good deed quickly done in terms of total non-billable minutes

As per my earlier advice re: GC, if the most excellent Raeleen answers the phone, tell her about 50 folks she knows here say "Hi"

ModCrewman · May 22, 2018 6:22AM

@jmlanzaf said:
If the coins were valued at $10,000 in the divorce disbursement, I would imagine the IRS would accept that as the cost basis. That means that only receipts of over $10,000 would be taxable.

I just want to point out that the value in the divorce decree would be irrelevant to the determination of the divorcee's basis in the coins. The basis would transfer from the prior spouse to the divorcee.

Coin Finder · May 22, 2018 6:48AM

Thanks folks, I really appreciate it. I cant give much more detail at this time. The divorce is done, assets divided.

It was and has been my opinion all along that the initial valuations were sky high and this has been communicated several times.

I am going to get some type of indemnity agreement, to exempt my from liability. It will have to include some very specific points about "value" and the costs of of selling. And also the inventory list from the settlement. This person is a dear friend of the family and in my opinion was taken advantage of and used in a mean spirited way. I just want to help...

YQQ · May 22, 2018 7:00AM

Good luck. Do what you feel you have to do. But cover your interest!
many friendships have ended up feuds over money.

Cougar1978 · May 22, 2018 8:18AM

If buying the collection outright is beyond your budget I would go partners w somebody competent in handling these deals.

I would do an inventory of the deal. Calculate what I could sell it for. Then make that person a lump sum offer which allows me adequate profit then they would take it - or pass and then need to sell somewhere else.

If your not competent to handle a coin deal of this nature you could refer them to coin shop, GC, eBay.

I have handled many collection / estate deals and in some instances gone partners. It may have been another dealer or perhaps best pocket trader. In this way partners can divvy it up based on what they can afford, are interested, flip for decent profit. The combined unified front gives synergy to negotiation.

Paradisefound · May 22, 2018 8:22AM

Good luck!

Unknown · May 22, 2018 8:26AM

This content has been removed.

ModCrewman · May 22, 2018 8:28AM

@jmlanzaf - There is a big difference between a death and an inheritance. Don't confuse the two, an inheritance gets the step-up in basis to the current market value; the divorce transfer does not.

jesbroken · May 22, 2018 8:36AM

I lost a close friend doing nearly the same as your op describes. Please realize that this person's family and friends are going to be advising her also and they will undoubtedly be describing horrific events that happened to a friend, neighbor or another family member, or just heard about. This they will be inundated with daily. They will tell her the coins(regardless of grade) should be worth the max listed. They will eventually become skeptical of you. I do not believe you will come out of this unscathed. JMO
I truly wish you the best of luck.
Jim

slider23 · May 22, 2018 9:13AM

@thebigeng said:
I am going to get some type of indemnity agreement, to exempt my from liability. It will have to include some very specific points about "value" and the costs of of selling. And also the inventory list from the settlement.

If you feel that you need an indemnity agreement to handle the sale, you are going down the wrong path. You may want to consider providing advice only on how to sell the coins. You could assist with putting a value on the coins and taking coin photos, but the final decision on selling price is the owner.

divecchia · May 22, 2018 9:33AM

I agree with a few others that have said to just point them in the right direction based on your experience, but if you want to remain friends I would not be directly involved with the sales as when it comes to money matters people become enemies real quickly.

Good luck.

Donato

Unknown · May 22, 2018 9:57AM

This content has been removed.

ModCrewman · May 22, 2018 10:02AM

@jmlanzaf - Any transfer by gift, transfers the basis from the donor to the recipient. The only exception is transfer out of an estate following a death. There are of course limited exceptions that rarely apply.

Unknown · May 22, 2018 10:38AM

This content has been removed.

Kkathyl · May 22, 2018 10:56AM

Perhaps you provide the options to them but explain that you rather it be done by someone else. I would say i collect XYZ and you have some here out of my expertise. Here is a dealer I trust, let me know how it goes. Let them know that the market changes and if they are not in a hurry, perhaps they wait till it is more favorable. Like winter.

TomB · May 22, 2018 12:28PM

When you find yourself in a hole, stop digging. That is unless, of course, you want to go deeper.

Truly, share this thread with your dear friend and let it go from there.

RogerB · May 22, 2018 2:03PM

Learn all you can about the origin & sources of the coins, especially the "$10,000" value. Divorce settlements don not have to be accurate - only agreeable to both parties & the Court (or Special Master). Once that is complete, you can go to the many suggestions made above and determine which creates the most revenue for the owner.

ColonelJessup · May 22, 2018 2:54PM

@TomB said:
When you find yourself in a hole, stop digging. That is unless, of course, you want to go deeper.

Truly, share this thread with your dear friend and let it go from there.

Perfect

SurfinxHI · May 22, 2018 3:39PM

I tried to post this yesterday. I'll post it today and be late to the game.

Final thought. If you have the capital and are willing to assume the risk, buy the collection outright. Then you sell it in whatever venue you wish (eBay, GC) and you have total control. Else, see the marvelous suggestions above. If you do this, then i hope you value it correctly given your eventual sales venue!
Surf

ricko · May 23, 2018 7:22AM

It has been my experience, that people who are not coin collectors, always believe coins are far more valuable than reality, simply because they are old, or gold, or 'different'. They have no concept of condition, rarity, mints etc.. Some get very upset when they are told they do not have a 'rare treasure worth thousands of dollars'...Therefore, I would recommend you simply steer this individual to a trusted outlet (i.e. GC) and let the process proceed. You will have done your best, the individual will get a fair deal, and all will be well in your relationship. Cheers, RickO

Coin Finder · May 23, 2018 7:50AM

Thanks everyone I believe you are collectively a very wise bunch. After much thought and your gracious ideas, I have decided to make introductions and let the person and qualified dealer handle the business. I am going to step aside. Thanks to you all!!

DoubleEagle59 · May 23, 2018 7:56AM

I'd respectively pass.

Way too many headaches and problems could lie ahead.

jesbroken · May 23, 2018 9:40AM

Very, very smart move tbe.

jmski52 · May 23, 2018 4:09PM

Unless this is a VERY close friend I would just give him the names of a few dealers/GC if the material is suitable. If going the Ebay route I would give this to Jeremy or someone like him to disperse of. No need to take this on yourself

This.

topstuf · May 23, 2018 4:46PM

DON'T
Divorces can get more complicated than anyone can imagine or plan for.

Unless you want repercussions, just send him along his way.

divecchia · May 23, 2018 5:02PM

Glad you decided to go the safe route.

Donato

Question and opinions wanted please read.

Comments

Leave a Comment