$20 gold piece vs $20

[metrotec]

A US $20 or $5 etc is worth exactly $$$ that amount. When you add in a gold coin to that denomination, it's worth a lot more especially when it's a rare date, mint.
If you find a gold US coin and sell it, you pay the taxes on that amount, not the historic value .ie; $1,2.5, 5 10, 20 etc
A gentleman in Las Vegas gave his employees a choice. Paid in Gold & silver coins or US greenbacks. They chose gold & silver.
When taxes were filed on their ,say $1000 per week pay, at that time a US $20 gold coin was worth about $1000 +-. See where this is going?
I file taxes on $20 (gold coin), not $1000. The coins and greenback's are legal US currency.
The IRS filed papers for taxes owed from the employer on $980.00 IRS lost.
Coins in today's market are worth a lot more, gold and silver. A copper penny is worth a penny, unless it's old, rare and has historical value.

 

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[malenkai]

The IRS bases things on actual value, not nominal value. There was a case a few years ago where a baseball fan caught a historic baseball; a really big deal, like it was the batter's most significant career homerun or something (I'm not a baseball fan, so don't know the details), but collectors valued the ball in the six figure range. The fan sees it as just a used baseball worth $10 or whatever they are worth. Not says the IRS, who sent the fan a large tax bill.

You also may have to be careful posting huge finds on these forums. I've heard stories of the IRS tracking down posters who post finds worth several thousand dollars. Whether or not these stories are true or not, I can't say. My biggest find was worth $2400, and the IRS never bothered me.

 

[metrotec]

I agree, but $20 in US currency is $20. Bill or coin. $1 bill vs silver dollar, both are $1 US money.
If I pay you $10 per an hour and you work 1 hour, I pay you in 10 silver dollars. If we have an agreement of spot price for silver vs your pay. I pay you $17 per hour, I give you 1 silver dollar for 1 hour work. You file and pay taxes on one dollar?
Think about it.
If Shoeless Joe Jackson autographed a dollar bill, it would be worth a small fortune because of the autograph, not the $1 it is actually worth.

 

[ToddsPoint]

The fan that caught the ball would not be liable for taxes unless he sold it, no matter how much it was worth. Gary

 

[trea]

oh this texas... it is better to use BTC
no texas, no problems...

 

[wingmaster]

It is still legal currency if you take that $20 gold piece to the bank and deposit it into your account your going to get $20 in your account, I would fight the IRS no problem and only pay face value. The better way to do it is if they never knew you found a stash, they didn't pay all your time detecting or any of your equipment, gas money, ect. so I don't see them entitled to any of it. HH

 

[fistfulladirt]

It is still legal currency if you take that $20 gold piece to the bank and deposit it into your account your going to get $20 in your account, I would fight the IRS no problem and only pay face value. The better way to do it is if they never knew you found a stash, they didn't pay all your time detecting or any of your equipment, gas money, ect. so I don't see them entitled to any of it. HH

I’m not aware of any banks locally that would be able to do that. In fact, most banks will refuse to take known collectible coins of any type. When you profit on a sale, of course, like a home or classic car, or precious metals, capital gains tax. Contact your tax man.

Whatever you do, have the proof of income when you make a deposit of a few grand or more into your bank account, or oh-oh!

Not only that but when you make a cash withdrawal at your bank for as little as a few grand of your own money that’s legitimate taxed income, the teller can generate a suspicious activity report, or SAR. Do that a few times a month and they call it structuring, deposits or withdrawals.

 

[fistfulladirt]

The IRS bases things on actual value, not nominal value. There was a case a few years ago where a baseball fan caught a historic baseball; a really big deal, like it was the batter's most significant career homerun or something (I'm not a baseball fan, so don't know the details), but collectors valued the ball in the six figure range. The fan sees it as just a used baseball worth $10 or whatever they are worth. Not says the IRS, who sent the fan a large tax bill.

You also may have to be careful posting huge finds on these forums. I've heard stories of the IRS tracking down posters who post finds worth several thousand dollars. Whether or not these stories are true or not, I can't say. My biggest find was worth $2400, and the IRS never bothered me.

Items not taxable until sale.

 

[Johnnybravo300]

I withdraw a few grand every week and they never say anything to me. Payday is every friday.
I leave in a hundred if that but never the rest.

 

[fistfulladirt]

I withdraw a few grand every week and they never say anything to me. Payday is every friday.
I leave in a hundred if that but never the rest.

Tellers or bank management are not obligated to notify a customer of a SARS report.

 

[Trokair]

Really murky question. I can't find anything saying that you *can't* use it as legal tender, only that you don't *have to* if you don't want to. This is why courts can refuse payments made in pennies for parking tickets. They don't have to accept the legal tender but they can if they want.

That said I would expect a judge would call the bluff on it as a collectible instead of the face value as it has a commonly known value and it should be pretty easy to prove it was used in lieu of cash for its collectible/bullion value.

 

[fistfulladirt]

Really murky question. I can't find anything saying that you *can't* use it as legal tender, only that you don't *have to* if you don't want to. This is why courts can refuse payments made in pennies for parking tickets. They don't have to accept the legal tender but they can if they want.

That said I would expect a judge would call the bluff on it as a collectible instead of the face value as it has a commonly known value and it should be pretty easy to prove it was used in lieu of cash for its collectible/bullion value.

Did you say there was a question? Or just a statement.

link to federal reserve

https://www.federalreserve.gov/faqs/currency_12772.htm

 

[Jason in Enid]

Items not taxable until sale.

The IRS proves this wrong. When the saddle ridge hoard was found, the IRS demanded payment of full taxes on the collectible value of the total, THAT YEAR.

 

[fistfulladirt]

Pro active IRS, source?

 

[Jason in Enid]

Pro active IRS, source?

You can do your own research on it. There was plenty of debate on the topic at the time.

 

[Akb082317]

It’s a real grey area, but there have been a few times baseball fans were almost in trouble. I’ll post a link that explains it better. Basically they (the irs) say if it’s that valuable and you don’t return it immediately, you have to pay taxes on it. You can read more about it below.
https://www.arnoldporter.com/en/perspectives/publications/2015/08/20150814_theres_a_catch_the_tax_on_catch_12134