What are the federal laws in USA regarding finding a buried coin cache?

[Abstrakt_Angel]

I will not hold anyone liable for anything if their answer isn't in complete alignment with the current federal laws and regulations, I just want some perspective.

Say I get permission to dig on someone's property and I find a buried cache. Say I signed a written agreement with the landowner prior to finding the treasure detailing that we both get 50/50. What must I do then with the treasure? Am i to contact the I.R.S.? What else should I do to declare my finding? How much are they going to take? Say I find $1,000,000 in gold coins, and I split it with the landowner 50/50, So I get $500,000, how much should I expect big brother to be taking away? Say this finding is not in California, so exclude that state and their laws from your answer.

Thank you in advance for any answers you may have for me!

 

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[Honest Samuel]

Best advice, contact a great tax lawyer. Good hunting and good luck.

 

[luke_00]

You owe nothing until you decide to sell.

 

[ecmjamsit]

Until you convert the treasure into US dollars, I think you are clear of liability. Or if you trade it for something of value.

 

[ecmjamsit]

And capital gains tax is 28%. So about one third goes to Uncle Sam.

 

[TommyB]

OR do the 'right' thing and keep your mouth shut and if you decide to sell, do it a little at a time. Do NOT call the news station to brag about your finds.
As far as the Govt knows, this has been in your family for generations. Why give them 28% ?

 

[uglymailman]

Didn't the IRS force the people that found the bucket of gold coins in CA. to sell them? Put a value on the coins and forced them to pay the tax anyway. If I ever find a cache it'll be one coin at a time. Good luck.

 

[AlienLifeForm]

Loose lips sink ships.

 

[smokeythecat]

You just get a lawyer in your state to give you good legal advice. And pay him for it. Of course the chance of finding a million worth of anything these days is like having a bus sized meteor land safely in your front lawn....today.

 

[DDancer]

If you really have to talk to someone about a million dollar find talk to a tax attorney first. Large finds may be considered treasure troves and state/federal rules for your area would need to be known. Federal will want their cut of what they think its worth automatically as the find will be considered income even if you have not sold anything. A good example of this came to light a few years ago when a fan caught a baseball that had set a record for a player. Its worth, according to the IRS, was a million dollars and the fan was immediately contacted for the capital tax on the ball. Needless to say it was sold shortly after to settle the bill.
As far as your written contract with the property owner it will stand that you must honor it and taxes would be shared accordingly.

 

[SeabeeRon]

Is this a hypothetical situation or is there more to your first post here?!?

 

[Sandman]

Till someone see's you with the loot, why do you feel you gotta tell Uncle Sam anything? KEEP YOUR PIE HOLE SHUT. Geez, some guys.

 

[Tom_in_CA]

Great topic. Enjoyed reading the answers thus far.

Per the answers that have a variation on "ask a tax lawyer": As a business owner: I can tell you for A FACT that you will often-time be given the "safe" or "book" answer to your "pressing question" . That's not to say it's not a GREAT (or real or true or whatever) answer. But is it the realistic answer ? It's like asking someone "can I spit on sidewalks?" What answer do you want to hear ?

If your question is about tax obligation, and a few of the answers thus far: A common misconception is that you only pay taxes at time of sale. Or only have income based on face value (ie.: a $10 gold piece is $10 , despite being worth $10k numismatically). If you care to read and weep: read up on the folks that found the cache in CA (while walking their dog, just eyeballed). Evidentally they were supposed to pay taxes on the value EVEN IF NOT SOLD YET, in the year they found it.

And I know you said to disclude CA as the state. But if you wanted to rattle enough chains of bored tax lawyers in other states, you might end up with the same "safe" answer to your "pressing" question.

As for seabee-Ron's input: yes: do shed more light. Did you find something ?

 

[Honest Samuel]

I am outrage over # 6, & # 7. Do not cheat IRS and therefore the good people of our country.

 

[Xraywolf]

I would not be seeking legal advice on a random forum.

Me, I would honor any agreement I made as far as 50/50, and no one else but the other 50 and me would have a need to know.

 

[TommyB]

Honest Sam, Just HOW are you cheating the Govt? First of all, most govt agencies don't want you to pull anything historical from the ground. They would rather just have it rot in the ground than have something old found kept and appreciated by the world. How do you think THEY are entitled to a cut? Tom in Ca feel free to chime in as well.

 

[Tom_in_CA]

Honest Sam, Just HOW are you cheating the Govt? First of all, most govt agencies don't want you to pull anything historical from the ground. They would rather just have it rot in the ground than have something old found kept and appreciated by the world. How do you think THEY are entitled to a cut? Tom in Ca feel free to chime in as well.

Hey, give honest-Sam a break. After all, his name is "honest", right ? And this being a family friendly forum, we can not advocate avoiding taxes that are legally due. So recant and repent ! Also you're right : How can you sleep at night and live with yourself, knowing that you have "pulled historical things from the ground" ? Tsk tsk. Because you're right: I bet I can find a government archie that would BRISTLE at the concept of you digging that buffalo nickel from the beach or school yard. Tsk tsk.

 

[Honest Samuel]

Honest Sam, Just HOW are you cheating the Govt? First of all, most govt agencies don't want you to pull anything historical from the ground. They would rather just have it rot in the ground than have something old found kept and appreciated by the world. How do you think THEY are entitled to a cut? Tom in Ca feel free to chime in as well.

For the record, I had graduated from HCC in Bridgeport, Ct. majoring in Accounting. I had taken tax accounting. I was taught no matter how you earn income, legal or illegal, you must pay your federal income taxes, and some states including Connecticut, we have state income tax. Any source of income, you pay income taxes. I am retired, but, if I found buried treasures, I pay state and federal income taxes. Any more questions?

 

[TommyB]

You are not allowed to hunt on my property and will not get a 50/50 share.
I also believe paying taxes on earned income. Don't always agree on how they spend it.

Just curious how much have you declared lately. Every nickle found, you owe a penny

 

[ivan salis]

both you and the land owner need to be on the "same page" ..the govt will only know what you tell them .. so if you or the land owner feel that you "must tell the world ' all about your find ..expect lots of problems ..everything from past land owners claiming it was a buried family fortune.... to banks claiming it was their "stolen funds" taken by robbers ..to insurance companies that paid out on the "loss' to a business being robbed that say its now theirs --to the govt claiming its a stolen money shipment ..nothing but risk of loss of all of it ...to at best a loss of a lot of it due to ( city / county /state /federal) taxation and legal fighting over your "find" and if by some mircle you get to keep your 500,000 dollar find (50% of a million-- PS you can expect to pay the high tax rate city. county /state and federal that goes with "making" that kind of money) ---ihowever f you and the landowner decide not to tell a soul -- you can sell off a few coins at a time --keep it below 600 bucks at a time and spread it out thru various people ( stay off the radar no big time cash in's) ...you did all the hard work , put out the sweat blood and tears and spent the time ,effort and risk to find it --why just "give it away" to those who did nothing to earn it? your find --your choice of action..

when a treasure hunter finds "treasure" everyone wants a "bite" of what they think of as a "free meal" --they have no regard as to how hard the treasure hunter has worked to make his meal occur -- they just want a bite out of it --or all of it if they can wrest it away from him /her -- as bob marx famously said --treasure is trouble --declaring that you found "treasure" brings all the scum sucking leeches of the world to your doorstep ...count on it ..having to brag is a treasure hunters worse foe...loose lips sink ships and leave you broke