Everyone Takes Their Fair Share


        Many dream of one day finding treasure. For a couple in Northern California, that dream turned into a reality when they found over 1,000 gold coins from the 1800’s in their backyard. They literally came across buried treasure! This was an amazing situation when it occurred a few years ago. Let’s take a closer look at how this would make a surprising financial impact.

          The gold in the coins was valued at $2 Million. However, since the coins were in good condition, which is rare considering their age, the whole collection was valued at $10 Million! At this point reality takes over from fantasy. Federal law states that taxes on lost or abandoned property must be paid as income in the first year a person takes possession of it. No one came forward to challenge their claim. The U.S. Mint investigated and determined the collection was not stolen from them. This couple would have to pay taxes on $10 Million of new income on their very next Tax Return. What does that really mean?

          Most likely, they would be put in the highest Federal Tax rate, paying 39.6%. They would also be paying 13.3% of tax in California. That can be used to lower the Federal Tax amount, but it still means that this couple will only keep about $5.3 Million, at most. In situations like this, everybody wins and takes their fair share.

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