The Tax Man Cometh

[MidMoTreasure]

First of all, I want to say WOW! to a 9-karat diamond being found at Crater of Diamonds Park in Arkansas! I have never been before, but it is one of those places I have always wanted to visit. May be time to load up the fam and take a road trip.

Unfortunately for this guy, the federal law requires us treasure finders to declare our finds as "income" and to pay taxes on them. Professional treasure hunters have known this for decades, but I'd bet that the average digger who nets a cool key-date coin, a rare Confederate belt plate, or that coveted 4-ounce gold nugget in the sluice box may not be aware.

https://www.forbes.com/sites/robertwood/2020/09/26/man-finds-9-carat-diamond-irs-finds-man/?fbclid=IwAR3jv_R_cViRoleKDuZAlTtHNc18nfwDRTkiudHJMO5yJe_6F8snEfYY55U#87c18ef12488


Now, you may ask, can I deduct my detector, gas, lodging (for those epic road-trip hunts), and chigger bite cream. Short answer is YES! Tax laws work both ways. See here: https://finance.zacks.com/reporting-earnings-metal-detecting-irs-5649.html

 

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[smokeythecat]

Fortunately for me, if I had to file anything the IRS would owe me a TON of money! 300,000 plus miles on the three vehicles, numerous air flights, dozens and dozens of hotel rooms, tolls, tolls and more tolls, park entrance fees, let alone the cost of the machines which is NOTHING compared to the other expenses! Of course I have never found a truly big ticket item. That diamond he found is something else. Now what he will get for it is another thing altogether. If he sells it.

 

[Honest Samuel]

The lucky man will get a visit from IRS, my favorite federal agency, telling him what the item is worth, and they want the money now. Always pay your state and federal income taxes of off to jail you may go. Connecticut has a state income tax.

 

[SeabeeRon]

Not a problem, I NEVER find anything of value!

 

[smokeythecat]

I occasionally find something I consider "nice". Like a damaged gold ring a couple years ago. I took it to a jeweler to see about fixing it. They wanted $550 and no guarantee it could be fixed. Sometimes salt water finds, even gold molecularly attach to some of the salt and the item is destroyed when they apply heat to it to try and fix it. Well, they said it couldn't be fixed and offered me $15 for it. The gas to get there and back was more than $15. That's why we don't do this as a business. Those little gold 14k light weight chains? A hand full of clad is worth more. That's due to the light weight and impurity of the gold at 14k. For fun go price one some day.

 

[Terry Soloman]

I worry a LOT more about my ex-wives than the I.R.S. Some of them are very, shall we say, "entitled" to my money - umm, "our money."

 

[halo71]

I've been to Crater Of Diamonds park several times over the years. Never found a diamond sadly. Great place to go and take the kids though.

I don't know if they still do it. But years ago they had gemologist on site that would grade the diamond. And they would make a cash offer to the finder. And take out taxes on the spot.

 

[MidMoTreasure]

I worry a LOT more about my ex-wives than the I.R.S. Some of them are very, shall we say, "entitled" to my money - umm, "our money."

You, sir, may be my spirit animal.

 

[smokeythecat]

I have found three at the crater way back in the day. They were tiny. Very tiny. On three flights down there, three trips. Talk about losing money but for me its the adventure.

 

[TimberCrack]

"Loose Lips Sink Ships" HEHEHEHE

 

[TommyB]

Me neither. If asked about all of the rings, etc. I've found..... They were handed down through the family. Getting your name in the news may be good for the ego, but can be bad for the wallet. If you find something worth big bucks, keep your mouth shut.

 

[crashbandicoot]

Deny everything,admit nothing,make counter accusations!

 

[Honest Samuel]

I worry a LOT more about my ex-wives than the I.R.S. Some of them are very, shall we say, "entitled" to my money - umm, "our money."

You would be better off if you always single.

 

[Dejure]

Deny everything,admit nothing,make counter accusations!

Or chase the sound legal advice: You have a right to not tell your agent anything. If you live in the District of Columbia, that right is set out in the 5th amendment. If you live in The State of Washington, you will find that right set out in the Washington constitution at article 1, section 24.

Generally, no one has talked themselves out of being arrested, then there is this. . . .