Taxes and treasure .

neo · Feb 23, 2014

So you find some money do you have to put on tax forms how much you found then what is it taxed ? Also do you have to say what u found like Confederate gold on tax forms i would hate to have to go to court over anything.

lastleg · Feb 23, 2014

If you wound up in court you would only have yourself to blame.

neo · Feb 23, 2014

I read a book that said you never have to say where your gold came from that you can fill out a certain area on tax forms is this true?
Book was written in 60s laws may have changed.

10claw · Feb 23, 2014

lastleg said:
If you wound up in court you would only have yourself to blame.

of course not to mention that the lawyers would wind up with what you found..
best deal

do like the three monkeys. see no treasure, speak no treasure, hear no treasure. in other words,
KEEP QUIET. or, if you feel guilty, give it to the police. they will know what to do with it and you will be clear. maybe.

neo · Feb 23, 2014

My biggest concern is if they ever come knocking how do you explain the money?

Sharecropper · Feb 23, 2014

You never put the money in the bank; you never tell anyone you have it; and you never, NEVER, report it to IRS. Period.

Bigdogdad · Feb 23, 2014

I have seen this issue discussed on TNET before. There is never going to be agreement on what to do. Some people say that you have to pay taxes on what you basically cash in to sell. For instance if you find gold bars you would pay taxes on what you sell them for. If you find them in a hole and don't sell them you may not have to pay taxes. I really don't know what the truth is. If I am ever lucky enough to find buried treasure I plan on getting the advice of a lawyer and biting the bullet by paying what ever I am supposed to in the way of taxes so that I can feel free to spend my share without having to look over my shoulder and having to worry about the IRS knocking down my door.

The law is the law. I am sure there are plenty of people on here that would think it would be stupid to obey the law. It is no different than cheating on your taxes. If you were lucky enough to win the lottery the government gets its share and you get the rest. Some people would take their winnings in a lump sum, and some would take yearly payments. In the long run you get more by taking payments and you may pay less in taxes.

I think TNET rules forbid giving illegal advice. Of course rules are for the little people. Do whatever you think is right. Live with the consequences.

neo · Feb 23, 2014

I'm.just curious about the legal ways of doing things as for the lottery i would take the lump sum I'm to afraid anything could happen with payments over such a long time company go under etc that one day they might not pay and you'll waste a lot of money in court, with that said i can understand if u found Confederate or British or Spanish gold because the laws get so muddy why you might not say anything.

vor · Feb 24, 2014

To answer your original question, it is taxed at market value in the year it is found at ordinary income rates. If it is scheduled on your return, you can use a general term. The IRS doesn't care as long as they get their cut. I doubt that origin could ever be proved and isn't a tax issue.

My guess is most people would just quietly put it in a safe/deposit box and go on down the road.

neo · Feb 24, 2014

Thanks

EccentricInTexas · Feb 24, 2014

First did you find it on Your own property. If not did you have an agreement to split it with the owner of the property. Or did you find it on public land. If you found it on public land then the government will probably end up with all of it. If you found it on someone elses land but had a prior agreement to split the find or on my own property I would pay what ever taxes I had to. I would do this because if it was a Large find you can sell the story to treasure hunting magazines and even to TV Channels. And if it was a huge find you would most likely never be able to realize its full value by selling it with out some one noticing the money showing up. Also it depends on which state you found it in. There are certain states that have claims or so called "Treasure" finds and have Highly regulated beach hunting areas. Just my thoughts.

Frankn · Feb 24, 2014

Lets get hypothetical!
First off, if you find something like gold bars etc. " you always find it on your own property" so you don't have claimers coming out of the woodwork.

You always find less than you found!! That way your excess spending, when noted, is accounted for. Hay, no one is going to keep that accurate an account of your spending plus you spend in CASH, the trail breaker.

Sure you pay tax on the "smaller amount" you found.

Lets be realistic. No one reports it all. If you did, you would be paying tax every time you sold something. Think about it. Frank...

JUNKER · Feb 24, 2014

Well you have to do what feels right for you. If it's old it's not like the new money with the strips in them so they can locate it. And if it's gold as they cash is king. As for the lottery I would take the lump sum never know what could happen with them or you

Treasure_Hunter · Feb 24, 2014

neo said:
So you find some money do you have to put on tax forms how much you found then what is it taxed ? Also do you have to say what u found like Confederate gold on tax forms i would hate to have to go to court over anything.

What gold Mr taxman, I never find anything but junk...

If you report you found gold you can bet your going to court....

duggr · Feb 25, 2014

If your conscience tells you to pay taxes then do what your heart tells you to do. Be prepared though!! Considering this country's financial situation the IRS will probably be swooping down on you and pressuring you and squeezing you until you bust and give up every last dollar and still not believing you gave all.. I'm all for paying whats due, but not putting my family or myself in what would be a miserable situation....Ever see the news report about the IRS spending around a million in tax payers dollars to throw a Party! I will give to Those in need before I throw anymore money away to those people who can't balance a checkbook.. I know a man who told me himself when Audited by the IRS that they asked him if he had any "Gold" at home in a safe...He answered "That's none of your business" which caused him a bit of grief, I wonder what would have happened if he said yes...."God Bless America" we need it!

10claw · Feb 25, 2014

Just for fun, Neo, since you sound as if you have'nt yet found any gold, -- call the I R S and report you found some.
from that point on, you will not need any more info about what to do. Also if you do call them ( just for the h--- of it)
of course, why not report back here so we will all know how it went. IF you're still outta jail. :laughing7:

for fun only now.

Bigdogdad · Feb 25, 2014

10claw said:
Just for fun, Neo, since you sound as if you have'nt yet found any gold, -- call the I R S and report you found some. from that point on, you will not need any more info about what to do. Also if you do call them ( just for the h--- of it) of course, why not report back here so we will all know how it went. IF you're still outta jail. for fun only now.

Why would he be in jail for reporting that he found gold?

Citiboy289 · Feb 25, 2014

Interesting question considering the find reported today of 10 million in California -------------- There are 2 schools of thought , that each person needs to answer in their own mind , Do I want the FAME " LOOK WHAT I FOUND " or Do I want the $ ?
FAME will bring lots of claims about who owned the property before and the weird uncle who buried the Cache, then will come the lawyers , and then the TAX MAN will wait for the dust to settle
The Baltimore Basement treasure in the 30's brought back former owners and renters of the property in legal actions
The Georgia Pots of Gold treasure in Forsyth Cty , again brought back former land owners and former share croppers
In both cases legal fees , and court costs GREATLY cut into the find
I don't want the FAME Give me the Cash ! Dispose of it in small amounts, over time
In My Opinion I strongly believe that many major treasures / hoards / caches have been found and were never mentioned
Its just a matter of what you want ---------- Would be a nice " problem " to have I must admit