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cbirds5
New Member

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

 
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fanfare
Level 15

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

yes. The value of a Maple Leaf is essentially the current per oz. price of gold, plus a small markup.  (or in your case, on  the day of the gift). That's why they are popular.


[correction: The gift tax value is the value when given. Your basis is her basis at date of purchase.]

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13 Replies
VolvoGirl
Level 15

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

You cost is what she paid for them.  You need to find that out.  Or did she die and you inherited them?  Did you sell them yet?  Or why did you go to the coin dealer?
cbirds5
New Member

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

no no she gave them to and does not remember what she paid and I ask a coin dealer because I was thinking I need to know the value when she gave them to 1 she needs to the value to file a 709 and 2. establish my cost basis in case one day I sell them.???
fanfare
Level 15

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

The gift tax value is the value today. Your basis is her basis at date of purchase.
They may have each been bought at a different time.
fanfare
Level 15

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

I'm looking at the monthly Gold chart for twenty years. Post a month and year, and I can give you a ballpark figure.
cbirds5
New Member

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

not knowing her cost is  the problem she gave 1 each Christmas for the past 16 years and she never kept record of theist , but as you mentioned this  monthly gold chart can that be used as the cost being i basically know the dates since it was my Christmas present?
fanfare
Level 15

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

Since 2000 gold was in a steady constant slope uptrend until 2011 rising from 250 to 1800.
Hence, the average price would be estimated at 1025 for your first twelve coins.
After that the price has trended down from high 1800 to low 1050.
I'd guess the average price around 1300 which is where the price is today.

If you want the End-of-Year price for gold on any given year, that should be more readily
available and found on the Internet. Or your dealer can give you the prices.

Your best bet is just to put them in your bank deposit box for the long term. Gold can only go up
since the US Dollar is a fiat currency with no intrinsic value.
cbirds5
New Member

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

In reading the very thought out answer to my question I find I asked the wrong question, my mother for 16 years at Christmas gave me 1 gold coin, now I want to sell them and need to establish a cost basis for them, mom has no idea but there is a monthly gold chart that list by day, for way way back the cost gold was on any given day, can I use that as the cost basis so when I sell them I will know if taxes are due on the sale ?
fanfare
Level 15

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

OK, but that is exactly the question I answered. I gave you reasonable approximate values for the cost basis. You'll never get the exact cost basis if there is no bill of sale. Even a daily chart will give a range of price and will not include the dealer markup she paid.
Most persons trade gold coins under the table, anyway.
fanfare
Level 15

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

If you really want to drill down, a major public library like NY Public library will have copies of Wall Street Journal and you can get the closing quote on any business day. You would need the exact date of purchase. My long range chart is limited to weekly graduation. You might find something finer elsewhere. It's silly to go crazy over it, in my opinion.
fanfare
Level 15

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

Just in case the suggested arithmetic is not clear to you, if you sold them all your basis would be (1025 x 12) + (1300 x 6).
You would have a profit, and pay Long Term capital gains tax on all coins except possibly the last one.
fanfare
Level 15

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

yes. The value of a Maple Leaf is essentially the current per oz. price of gold, plus a small markup.  (or in your case, on  the day of the gift). That's why they are popular.


[correction: The gift tax value is the value when given. Your basis is her basis at date of purchase.]

VolvoGirl
Level 15

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

I don't think so.  For a gift your cost basis is the same as the giver.
fanfare
Level 15

My mother gave me 18 maple leaf gold coins, I went the largest gold and coin dealer in town, is that my future cost bases, if not what do I do ?

You're correct. My mistake.
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