Taxes and treasure .

[Madmox]

I would argue that since the United States is no longer on the gold or silver standard how could they justifiably tax it as income, since it is not legal tender or representative of such,unless it was sold. Just my 2 cents

 

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[DaytonaRacer]

Not meaning to be a Thread Jesus but reading this a question came to mind that I haven't seen answered elsewhere...

When you win a lottery (or hit it big enough gambling at the casino/track) you are required to pay taxes. When you file your tax return you enter the amount won and the amount of taxes taken out of those winnings. You also get to deduct the cost of non-winning lottery purchases that year from your total to reduce your tax hit.

Is there anything comparible with treasure hunting that would legally reduce your tax hit like with the lottery/gambling (assuming you had to pay taxes on the treasure find and then enter it on your tax return)?

 

[Madmox]

I bet you could dedect any money you spent on your detector and costs associated with searching for it. If your saavy enough.

Sent from my HTC6525LVW using Tapatalk

 

[Diggin-N-Dumps]

My biggest concern is if they ever come knocking how do you explain the money?

Just throw the pocket full of dirty coins at them and RUN!!!!

 

[KevinInColorado]

I bet you could dedect any money you spent on your detector and costs associated with searching for it. If your saavy enough. Sent from my HTC6525LVW using Tapatalk

Yes, that's basically right. For what the IRS calls a "hobby" ( your wife may call it your obsession!) you can deduct expenses up to the amount of you revenues/earnings/winnings. If you have a net profit at least some years, you can sometimes declare it a business (!!) and deduct all expenses even if that means you go negative some years...check US IRS website for more details on this. Don't take my advice, I'm no tax expert ;-)

 

[Treasure_Hunter]

Your basically correct, you have 3 years to show a profit, 4 years if you file paperwork for extension then if you don't show a profit it is declared a hobby, but if you show a profit the timer is reset..






American by birth, Patriot by choice.

I would rather die standing on my two feet defending our Constitution than live a lifetime on my knees......

 

[DaytonaRacer]

I thought that you could not deduct expenses from a hobby in your taxes, only if it's a business.

 

[KevinInColorado]

I thought that you could not deduct expenses from a hobby in your taxes, only if it's a business.

well, now you know better...that's why tnet is so great!

 

[Curtis]

Just trying to help here...the law says taxes are due in the year that you take undisputed ownership of the treasure. Lots of ways to look at it...and be law abiding... just dispute ownership of it with your wife for the next 20 years while you spend it down? haha

 

[Dixiegal]

Confederate gold and taxes don't mix real well Dude.

 

[Treasure_Hunter]

I thought that you could not deduct expenses from a hobby in your taxes, only if it's a business.

You start a metal detecting business, example finding lost jewelry, locating property line stakes.........






American by birth, Patriot by choice.

I would rather die standing on my two feet defending our Constitution than live a lifetime on my knees......

 

[BARKER]

Hi NEO; "NO".!!! Not unless you find a million bucks or something ok. Relax and enjoy your hunting ok. PEACE:RONB

 

[Limitool]

I too have thought about this scenario a lot. And I was asking something like this in a thread I started awhile back. To step forward and announce to the world you found 100+ gold coins in 2 old leathered bags hidden in a dark spot under 3 large flat rocks would bring not only tax problems but many others. I believe the majority of people (like me) would elect to keep their mouth shut, move the cache and then do a lot of thinking. But wouldn't it be fun to share and show though But that's the beginning of the end I believe. I believe if I ever had this problem I'd keep quiet, sell of everything I don't need like other properties and learn how to sell them (coins) 1 at a time over time. Maybe buy the property you found the cache on and give a generous price for the property. But taxes would be something I'd totally try to avoid because of all the other problems that come with it.

 

[lesjcbs]

There was a case several years ago in Las Vegas NV where an employer paid his employees in gold coins. The face value of the coins amounted to a very small amount. When they filed their taxes returns at the end of the year, the IRS wanted to talk with them about the small amount they claimed. The IRS said they had to pay taxes on what the WEIGHT value or what they would sell for to a collector. The result was a court case where the IRS lost and here is why. If you find a $50.00 gold coin that was minted in the 1800's, you have $50.00 only for tax purposes, nothing more. Now, if you melt it down and sell it for it's weight value, or sell that gold coin for what it is worth to coin collectors, say $10,000.00, you then have $10,000.00 for tax purposes. If the IRS had won that case, then all them coins in your pocket made of silver, copper etc, would have a double value to them and that would lead to huge amounts of confusion in our currency system. What ever the face value that is stamped on a coin, that is it's value and nothing else and that is all you can be taxed on, period!

 

[KevinInColorado]

There was a case several years ago in Las Vegas NV where an employer paid his employees in gold coins. The face value of the coins amounted to a very small amount. When they filed their taxes returns at the end of the year, the IRS wanted to talk with them about the small amount they claimed. The IRS said they had to pay taxes on what the WEIGHT value or what they would sell for to a collector. The result was a court case where the IRS lost and here is why. If you find a $50.00 gold coin that was minted in the 1800's, you have $50.00 only for tax purposes, nothing more. Now, if you melt it down and sell it for it's weight value, or sell that gold coin for what it is worth to coin collectors, say $10,000.00, you then have $10,000.00 for tax purposes. If the IRS had won that case, then all them coins in your pocket made of silver, copper etc, would have a double value to them and that would lead to huge amounts of confusion in our currency system. What ever the face value that is stamped on a coin, that is it's value and nothing else and that is all you can be taxed on, period!

This makes complete sense to me. When you sell the coin, you will pay the rest of the taxes so the govt will eventually get their share!

 

[lesjcbs]

This makes complete sense to me. When you sell the coin, you will pay the rest of the taxes so the govt will eventually get their share!

That was how the jury voted. Imagine you have a store and someone comes in and buys a candy bar that costs one dollar. If the IRS had won that case in Las Vegas, if your customer gave you a quarter that is worth say $2.00, you would then have to give that customer back one dollar in change. Situations like that would turn our economic system upside down and on it's ear.