Taxes to Eat Half of Couple's $10M Gold Find
Calif. find will be taxed at the highest rate
By Rob Quinn, Newser Staff
Posted Feb 28, 2014 1:42 AM CST
Some of 1,427 Gold-Rush era US gold coins are displayed at Professional Coin Grading Service in Santa Ana, Calif.   (AP Photo/Reed Saxon)

(Newser) – The $10 million stash of gold coins a couple in California found while walking their dog is a big bonanza for Uncle Sam, tax experts say. Most of the money they make from selling the coins will be taxed at the highest level, meaning state and federal taxes will eat up almost half of what the coins the couple discovered on their property are worth, reports the San Francisco Chronicle.

The couple could try to argue that the find should be taxed as a capital gain, but it would be a tough case to win, and legal proceedings would make their names public, potentially bringing a flood of treasure-hunters to their property, an accountant says. "They are going to pay the ordinary income tax and be happy with it," he predicts. Treasure troves have long been considered taxable income, including in a famous 1964 case where a couple who found $5,000 in a used piano they bought for $15 came to the attention of the IRS, Forbes notes.

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Showing 3 of 118 comments
Ezekiel 25:17
Mar 1, 2014 5:56 PM CST
First of all you don't publicize the find. Their reason was most likely vanity at work. Second you liquidate the coins very slowly. A good way to do that is Ebay. Coin shows also help as you want as many cash transactions as possible. I know a guy who spent years looking for a long lost gold coin stash from a late 1800's train robbery. He never admitted to his family finding it yet he bought new cars and built a new home. He was smart enough to get a mortgage for the home and then use the coin funds to make the payments. He got a 3 percent note so it was like paying a processing fee to liquidate the find. He then did not have to use his income from the job to pay on the note and he could enjoy taking trips to Europe and Asia. He eventually liquidated all the coins for around $1.5M. But it took 20 years.
eatthebankers
Mar 1, 2014 10:57 AM CST
In the first article I read, they were going to use quite a bit of the proceeds to Charity. What is to stop them from donating that chunk of cash to the Charities of their choice, and deducting them from their taxes every year? At least it would go where they want it. No sense in selling them now, and they said it wouldn't change their lifestyle. They are theirs till sold. One or 20. a year, and gift them to family members.
BillyB
Mar 1, 2014 9:31 AM CST
We had a Revolutionary War to fight against unfair taxation. Looks like we've come full circle.