Selling Gold

[yakers]

I have a very small number of Krugerrands my father left me. I figure it is time to sell them now or in the near future and I am trying to figure out how to do that. The local dealers buy low and charge a fee. And if I have a few of them then it triggers a California tax issue (& maybe a Federal one?) I do not know what my father paid for them but I could look up the value of them on the day he dies but they were given to me so I do not figure there 'should' be any tax issue. The other thing I have seen is that some people are selling them on ebay, the rate is good but I expect ebay has pretty hefty fees too. Anyone sell a few gold coins and found a way to get the market value and minimize expenses. Is it any easier to sell them in other countries or are there similar issues?

 

[calmloki]

Maybe try these guys? I use them just to keep track of where our Philharmonics might be. Never have bought or sold from them, but they've been in business for a # of years....Gold Coins and Bullion Dealer - American Gold Eagle, Canadian Maple Leaf, Panda and Krugerrand Gold Coins

 

[SC]

I have used AJPM (the link in the previous reply) and they were very easy to work with. Kitco is another company with a good reputation although I have not used them personally.

I don't know a thing about California taxes, but the feds will consider it to be a sale of a collectible, taxed at the 28% rate.

 

[yakers]

I don't know a thing about California taxes, but the feds will consider it to be a sale of a collectible, taxed at the 28% rate.

The tax would be 28% of gross? How do they know the price it was purchased at? I received these at no cost (stepped up value?) from my father's 'estate' (he didn't have much). There are no records of these coins so how are gains to be calculated?

I thought I had read a while back that an individual coin is not taxed. It is more of a collector ownership rather than an investment. So maybe I can sell one each year?

 

[Martha]

SC is right. The fed tax is 28% of the gain, the difference between your basis and the selling price, less any costs.

If from dad's estate when he died, find out the price of gold on the day he died to figure out your basis.