Old $$ found in the backyard (From 1899-1929). Lots of it.

[Sundog]

Below are a couple snipits from the CNN article. Old money was found while digging up a tree in the backyard. Worth lots more due to the age of the money.

Anyone know what the IRS does in cases like this??

If it had happened to me I think I would have kept it really quiet and not blabbed all over. If I was going to sell it off I would do a little at a time and keep it under the radar.

Eaglekeeper or CPA...what is your take on this?

He ripped the top off and found nine rusted cans that he and Villcliff, 27, cracked open to find about 1,800 bills, including more than 900 $1 bills, 200 $2 bills, and 300 $20 bills dated from 1899 to 1929.

There were also piles of gold and silver certificates and scores of notes from local banks in Methuen, Haverhill, Amesbury, Newburyport and beyond.

The buried treasure is worth more than $100,000, according to a coin shop owner.

 

[Qwest]

damn, i would have kept it on the low as well.
i dont think selling the goods to a collector can be seen as income (taxable).
i would like to hear the acct / lawyer aspect though.

 

[z0mb13]

whoa if the 100000 was in the bank, it would be like one zillion dollars now!!

 

[mcvickj]

My lips would have been sealed.

 

[mugs]

I'd just say the bills came with the house

 

[psteng19]

I saw this on the news last night.
Don't know the answer to your question though.

I wonder what ~$7300 could get you back then?
Anyone know how much it translates to in 2005 dollars, factoring in inflation?
I know it must've been a lot, given $7300 today is not a small sum.

 

[shuan24]

"I'm a pessimist; I was waiting until I got a professional review before I jumped to any conclusions," Villcliff said. "Tim, however, was singing and dancing. He was ranting like a rabid monkey."

what a racist jerk!

 

[ElFenix]

<not giving legal advice> it full depends on the state law of finding treasure on your property. if the law is one way, technically you paid for it when you bought your property, and so it isn't income. if the law is another way, its a windfall and you owe income taxes on it </not giving legal advice>

 

[dquan97]

I dont think the IRS will be sending them a tax bill...

 

[Platypus]

Sundog!! Nice to finally see a familiar face

 

[TheAdvocate]

Originally posted by: ElFenix
<not giving legal advice> it full depends on the state law of finding treasure on your property. if the law is one way, technically you paid for it when you bought your property, and so it isn't income. if the law is another way, its a windfall and you owe income taxes on it </not giving legal advice>

This is completely inaccurate. First, state law would only affect state income taxes, not fed.

Second, the Internal Revenue Code considers this a windfall and it's fully taxable as income. This is not legal advice - just look up windfalls in the code or read the case about the family who found a satchel of cash in one of their walls when remodeling.

 

[ggnl]

Recovered treasure is included in gross income.

 

[CRXican]

they can't get taxed on that money, it's cash that was just sitting there

aparetnly I'm wrong

I wouldn't pay sh1t, nor would the media have ever found out if it werw me

 

[TheAdvocate]

Originally posted by: dquan97
I dont think the IRS will be sending them a tax bill...

Depends on what they do with it. If they make large cash purchases or large deposits, they will trigger a multitude of tracking/warning systems.

And now thatthe story is public, you can be sure they'll get audited if it doesnt appear on their 2005 return.

 

[Sundog]

Hey CorpRec...

Have not been around much. Trying to get the bike ready for when the trails open up and I can attempt to keep from launching myself into a tree or two. Still have to monkey around with the carb and get it sound checked.

 

[Phokus]

They shoulda kept their mouths shut, what morons.

Edit: I wonder though, if they have bank accounts from that loot, do they get to keep the bank accounts or do they have to hand it over to the descendents of the house?

 

[freebee]

Of course its taxable. They should laid low and spent it slowly. that rabid monkey cost them a load in taxes.

I'm more interested in who the money belonged to, and how come they never came to get it.

 

[CPA]

Honestly, I don't have a clue other than if they sold it to a collector the gains would taxable.

 

[BillyBatson]

i wonder who put it there and how long ago! only kids bury money in tin cans but no kid has that much money! lol so it must be from a robbery

 

[Demon-Xanth]

It's effectively not income until he sells it. Then he has to pay taxes.

 

[feralkid]

Originally posted by: z0mb13
whoa if the 100000 was in the bank, it would be like one zillion dollars now!!

It isn't $100,000 in cash.
It was around $4000 IIRC.

The cash they found is NOW worth 100 grand.

 

[Fern]

If, under state law it belongs to them - it's taxable as gross income under section 61 of the Internal Revenue Code.

The taxable amount would be the FMV of the treasure. Its taxable now too. If they later sell it for more than today's FMV, that increase would be taxable when sold.

I'm a tax CPA

Fern

 

[Bootprint]

Originally posted by: shuan24

"I'm a pessimist; I was waiting until I got a professional review before I jumped to any conclusions," Villcliff said. "Tim, however, was singing and dancing. He was ranting like a rabid monkey."

what a racist jerk!

 

[EagleKeeper]

Funds shold belong directly to them if they own the property.

The value is the face value, not the collectible value.

Selling the items for collectible value then creates a capital gain.

 

[vood0g]

Originally posted by: shuan24

"I'm a pessimist; I was waiting until I got a professional review before I jumped to any conclusions," Villcliff said. "Tim, however, was singing and dancing. He was ranting like a rabid monkey."

what a racist jerk!

LOL