Here’s a question

[Bruce R]

Say that I buy a piece of property for 25 grand, and I detect there and find a cache there that I sell for 30 grand, I’m only liable for 5 grand in tax since I essentially bought the cache when I bought the land, right ?

 

Amazon Forum Fav 👍

How to Research for Treasure Hunting and Metal Detecting From Lead Generation to Vetting - Grab it through Amazon!

[kingskid1611]

Here is your answer. If you bought the land you own everything that came with it. Why would you claim it on your taxes. What would you do if you discovered a gold mine underneath it....would you tell the world?

 

[Actionman]

Only if the land is worthless. You would still own the land witch would be a asset.

 

[Mackaydon]

IMO: Your tax basis in the land remains at 25k. Whether or not you owe tax on the land will only be determined when you sell it.
As for the second issue, take a look at this article, then consult with your CPA.
https://www.moneymanagement.org/blog/do-you-have-to-pay-taxes-on-found-gold

​

Don.....

 

[Treasure_Hunter]

If you reveal it you will owe taxes on all of it, it is considered a treasure trove, just like California couple owe taxes on the cold coins they found on their property.

Couple Finds $10 Million In Gold Coins; Taxes Take Half (forbes.com)

 

[Honest Samuel]

You all know that I am going jump all over this one. Why are you asking us? Ask your CPA. Now, go out and find that gold.

 

[Bruce R]

You all know that I am going jump all over this one. Why are you asking us? Ask your CPA. Now, go out and find that gold.

I can’t afford to pay someone to do my taxes for me, every year I put my w-2’s in an envelope and mail them off to the IRS and let them figure it out. That being said, I’m not gonna pay a CPA to answer a hypothetical question.

 

[ivan salis]

you bought it and all it contains --so its yours all 30,000 of it ….now how much of your good fortune you wish to bestow upon the federal , state and local govts is up to you , how much do you need to blab and brag ?

 

[MidMoTreasure]

As Treasure_Hunter said, you will owe current year income taxes on the $30k you found. The cost of the land is irrelevant. You MAY be able to deduct your hunting expenses for that tax year if you save receipts.

Hypothetically, of course.