Tax Question. (Regarding Metal Detecting Finds).

[ZOFCHAK]

Say someone was to find a significant amount of gold jewelry in a particular tax year, but did not sell the items until the following year. Would they be responsible for paying income taxes on the gold for the year in which the items were found? Or in the year in which they were sold? Also, if the income is taxed in the year in which the gold was found how would one go about determining the actual value given the ever changing spot prices? Would you base it off the price at the end of the year, the day you found the item or the yearly average ?

This is purely a hypothetical question, my gold finds are so miniscule I don't think Uncle Sam would even bother.

 

[Tom_in_CA]

I'll let someone else answer the IRS and state-tax question. But as an aside: I presume you're asking this, so as to be utterly compliant with laws, right? Because yes, I suppose that "income" is income, no matter the source. And likewise you could do write-offs for the expenses you incur (fuel, batteries, depreciation on your machine, etc...) if you wanted to.

But a question: Why stop at those laws? Haven't you already violated lost & found laws, by merely having gold rings you found, to begin with? Check with the lost & found laws in your state, and you'll find that most states have a threshold of something like items worth $100 or more were to have been turned over the police dept. anyhow, for proper channels of lost & found protocol.

 

[BarberBill]

Tom brings up some good points, but to answer the original question, I believe the money would be taxable for the year the sale was made. The jewelry didn't have an exact $ value until it was sold and the money was in hand. As to whether to declare it or not in the first place, let your conscience be your guide.
BB

 

[mudpuppy]

I suggest you apply to the IRS for a tax credit regarding all the pulltabs/foil you find, for actual gold price weight based upon the signal strength...after all, that could be considered "lost wages/investment" since they didn't turn out to be gold, yet were electronically identified as such.

 

[usafaviator]

I hang on to everything I find...with the way the world economy is going, the day when regular currency acceptance is nearing an end, and the world will go back to trading what people have universally recognized and valued for ages- gold and silver. Precious metals are a language spoken in all circles.

 

[Tom_in_CA]

n/t

 

[dewcon4414]

If i did that usafaviator my luck someone would break in my house and steal it all...... but then we are talking about the IRS a mugging is a mugging.

Dew

 

[Flintstone]

The lost and found law is so the police chief can have a little more money at the end of the year that he don,t claim on tax.

 

[TerraDigger]

Not a tax expert....my understanding is that coins are taxable at face value (currency denomination) until sold. So a $20.00 gold piece is taxed at $20.00 until sold/bartered for a higher value. Then taxed on that amount sold/bartered for. Jewlery.......I have no idea.