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LCS
New Member

I inherited jewelry then sold it. Is this money taxable?

 
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JaimeG
New Member

I inherited jewelry then sold it. Is this money taxable?

The Jewelry in itself is not Taxable but it is possible that the profit on the sale of the items is. This profit is based on the Fair Market Value of the items. At the time that you inherited the items the Fair Market Value becomes your Cost Basis which is the dollar amount used to determine a profit or loss from the sale. So for example:

3 Diamond Rings and Rings and 2 Pearl necklaces hold a Fair Market Value, at the time of inheritance, of $500.00. You approach a Store and they offer you $400.00 or all 5 items you do not recognize any income from this transaction since the FMV was $500.00 and you sold the items for less than FMV. But if you sell the items for $800.00 you must recognize the income of $300.00. Now from this profit you are allowed to remove any costs that are directly related to the sale or valuation of the property; costs for appraisal, ebay fees, consignment fees etc.


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3 Replies
JaimeG
New Member

I inherited jewelry then sold it. Is this money taxable?

The Jewelry in itself is not Taxable but it is possible that the profit on the sale of the items is. This profit is based on the Fair Market Value of the items. At the time that you inherited the items the Fair Market Value becomes your Cost Basis which is the dollar amount used to determine a profit or loss from the sale. So for example:

3 Diamond Rings and Rings and 2 Pearl necklaces hold a Fair Market Value, at the time of inheritance, of $500.00. You approach a Store and they offer you $400.00 or all 5 items you do not recognize any income from this transaction since the FMV was $500.00 and you sold the items for less than FMV. But if you sell the items for $800.00 you must recognize the income of $300.00. Now from this profit you are allowed to remove any costs that are directly related to the sale or valuation of the property; costs for appraisal, ebay fees, consignment fees etc.


troy1
New Member

I inherited jewelry then sold it. Is this money taxable?

Are you not allowed to take the capital loss?
SweetieJean
Level 15

I inherited jewelry then sold it. Is this money taxable?

Not on personal items.  
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