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Level 1
posted Oct 25, 2023 1:17:11 PM

Is a gift income?

As an incentive to convert my IRA to gold, I was given gold and silver, which I took delivery of. Do I need to declare this as income? If yes, then at the declared (higher) value or spot market?

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1 Replies
Employee Tax Expert
Oct 25, 2023 1:28:19 PM

Yes - you need to declare this as income.

You had to do earn the amount by doing something, so it is not a gift in the ordinary sense.

You should report the fair market value of the gold at the time of receipt as income (spot).