If the coins are inherited the son gets the basis on the day of death (or alternate date if the estate makes that choice). This could be a step up or step down. The father's records are not needed.Bongleur wrote:If you inherit stock or a mutual fund or ETF, your basis is the price on the day of death. Why should a physical coin be treated differently than GLD ???Epsilon Delta wrote:If he does not have records his recourse is to use zero basis. If he has inadequate records, such as knowing just the year of acquisition, he can use a worst case (lowest value) estimate of his basis to the extent his records support it. He does not have recourse to making things up.Bongleur wrote:>He is liable for $6,000 in undeclared capital gains. When you gave him the appreciated asset, you gave him your basis of $2,000.
But your son has no idea what the basis of the gift was. Nobody gave him a figure. His only recourse is market price on the day of receipt.
Are non-numistmatic coins "collectables?" Never can remember where the criteria for the 28% vs tax bracket valuation are spelled out.
If the coins are a gift the sons basis is the fathers basis, unless the father had a loss, in which case it has a duel basis, the fathers basis is used for gains and the value on the date of the gift is used for a loss (in between there is neither a gain nor a loss). The father's records are needed.
The discussion here was about a gift. If it was a gift you can't pretend the father died just because he did not share his records.
By the way the 28% is a maximum, if your ordinary income tax rate is less you pay that rather than the 28%.