I sold a few thousand dollars worth of gold coins last year, how do I report this via Turbotax?

[anthonytaxes20]

I should first point out that the gold coins were a gift from a deceased family member. Should I report this under "Less Common Income>Miscellaneous Income, 1099-A, 1099-C" or something else?

Or does the sale even have to be reported at all considering the coins were a gift? Please let me know. Thanks.

[anthonytaxes20]

Does anyone know? 

[DawnC · Accepted solution]

Yes, you need to report it on Schedule D.   If you received a 1099-B, follow these instructions and mark the sale as a collectible sale.   The basis is whatever the deceased family paid for them.   

If you did not receive the 1099-B, report it in the same section and just answer NO to the Did you receive a 1099-B?  question.   This discussion covers the sale of gold with no tax form.  

[timfromli]

Unless you received a 1099  (highly unlikely),  I would not report it.  Gifts are not taxable. If you did receive a 1099, you might need to figure out and document the value of the coins when you received them as a gift and pay taxes on the appreciation above that value.     

[anthonytaxes20]

I see, and any gains need to be reported even if they were < $2000 and paid for in cash?

[DawnC]

The gains must be reported.   The basis will be deducted from the sales price, so you won't pay tax on the ''gift'', but you must report the capital gain or loss, even if it is $1 assuming you are already required to file a tax return.    TurboTax will calculate the gain based on the sales price and the basis.   The basis of gifted property is the donor's adjusted basis.   

----------------------------------------------------------------

When you sell a capital asset, the difference between its cost basis and the selling price results in a capital gain or loss.

• A capital gain is when your asset's sales price exceeds its cost basis (in other words, you made money). Capital gains must be reported on your tax return.
• A capital loss is when you sell the asset for less than its cost basis. Capital losses from investments can be deducted, but not those from personal-use assets, such as your home or personal vehicle.

Your total capital gains for the year minus your total capital losses results in either a net capital gain or a net capital loss.

• Short term capital gains (gains on assets held one year or less) are taxed as ordinary income.
• Long term capital gains (gains on assets held more than one year) are taxed at a more favorable rate than ordinary income.
• Net losses are deductible, but only up to a maximum of $3,000 ($1,500 if married filing separately). Any capital losses you couldn't deduct this year can be carried forward and deducted on future tax returns. This is called a capital loss carryover.

[no-name1]

I don't believe that's correct.  Depending on the date of death of the family member, you more than likely report the value assigned in the estate on the date of death as your basis (not what they bought them for earlier in life)

Correct me if I'm wrong.  I need to record a similar sale.  DOD was in 2013

[JamesG1]

This IRS website states:

To determine if the sale of inherited property is taxable, you must first determine your basis in the property. The basis of property inherited from a decedent is generally one of the following:

• The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return)).
• The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. See the Instructions for Form 706.

For information on the FMV of inherited property on the date of the decedent’s death, contact the executor of the decedent’s estate. Also, note that in 2015, Congress passed a new law that, in certain circumstances, requires the recipient’s basis in certain inherited property to be consistent with the value of the property as finally determined for Federal estate tax purposes.

The receipt of the gold coins was a gift to you and no income would be reported.

The sale of the gold coins would be reported on Form 8949 / Schedule D as the sale of an investment asset.  The basis of the gold coins would be determined per the IRS website above.  Report sale in TurboTax Online as follows:

• Go to Federal / Wages & Income / Your income / Investments and Savings.
• Click Start / Revisit to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
• Click Add investments.
• At the screen Let's import your tax info, click Enter a different way.
• Click on Stocks, Bonds, Mutual Funds.  Continue.

@no-name1

[SGilm79]

I inherited 5 gold coins from my father when he passed away in 2010.  I sold 3 of them in 2023.  I have no idea when he bought them or for what price.  How do I calculate the tax?

[SGilm79]

w

[CatinaT1]

Inherited gold coins receive a stepped-up basis, which means the cost basis for tax purposes is adjusted to the fair market value at the time of the decedent's death. So you don't need to know what he bought them for, but what the value was on the date you inherited them.