How to gift an ounce of gold to each of my adult children?

Forum|Forum|1 year ago
December 20, 2024
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I have two 1-ounce bars of gold that were given to me with no records from a friend a couple of years ago. I want to pass them along to my son and daughter as Christmas gifts, one bar to each of them. I would not want them to have to pay capital gains on the entire amount when they choose to sell them. I don’t know how to establish the base price. Does anyone have any instructions on how to do this correctly and establish a record?

Not A Product Question

pk12_2

@MCD9861 , note that a gift has (a) basis same as that of the donor and (b) if below the yearly free amount does not require any reporting.

The best /sure way to avoid capital gains tax on a "gift" is not gift to the recipient but pass the item as inheritance i.e. use the basis "step-up" at the passing of the donor. Keep the item ( ear marked for the recipient ) as marital/ family asset as inheritance for the recipients.

Does this answer your query ? Or have I mir-interpreted your question ?

MCD9861Author

I very much appreciate your taking the time to respond, but I still have the same question. Thank you very much for your time!

I don’t know how to establish the cost basis because my friend gave me these two bars of gold in 2022. He put them in my hand and said, “Here, these are for you.” I have no paperwork and he died 18 months later, so I can’t ask him for any receipts.

I would like to wrap these for Christmas and give them to my son and daughter as a gift. They are young adult adults and I don’t want them to have to wait another 0 to 30 years for me to die before they can use them.

What I was trying to learn is how I can establish the cost basis so that when they sell their gold at a time that is most useful to them, they will only pay capital gains on the actual gain from the time it was given to me. Based on your answer, maybe that doesn’t even matter?

I think you are trying to help me understand that they can each sell their one ounce as long as the payout is under the amount that the gold buying company is required to report (I think that is currently $10,000 or less). I’m reading that hold is predicted to go up around $3000 per ounce in 2025. At that price and because they are so young, I guess if I give them this gold, they will both sell LONG before it could ever reach near $10,000.

Is that all I need to know?

Thank you!!!

pk12_2

@MCD9861 , in that case ( i.e. you want to gift the bars for Christmas ), just ignore all other consideration and put these under the tree. Their basis ( for Cap gain/loss purposes and in the distant future ) would be the same as yours, which is Fair Market Value when you received these as gift --- You can use KitCo, JMBullion, Yahoo etc. for spot gold price around thew time your friend bought ( or failing that, when you the gift ) the 1 oz. bars. All you are trying to do is "best effort" determination. Note that depending on circumstances and/or desires, people often convert the bars to Jewlery and the ignore the basis, because they never intend to sell the bars. Others ignore everything and hold the item till passing on to his/her progeny as gift. It is not worth worrying about because the future is so uncertain.

That is my view on this.

Is there more I can do for you ?

Merry Christmas