Should I sell my coin collection?

Reposted with Permission from Coinsforsale.com

Coin collecting, also known as numismatics, is for those who are passionate about this hobby. This is because it takes time, patience, lots of cash, and research skills to build up a splendid coin collection. Among the things you are proud of in life, very few can come close to your treasured assortment of coins. Though it's your pride and joy, like all things, a time will come when you have to leave it behind.

That coin cache, being your once-in-a-lifetime achievement, will be enjoyed by another individual at some point in life when you exit the stage. It thus begs the question, "Should I pass them on to my heirs, or sell them?"

The Case for Passing Them Down

A coin collection isn't just about hoarding minted metal for the sake of it. Those coins have actual value that could be of great help to your heirs someday in their future. It stands to reason that any great parent or guardian would want to leave their dependents an inheritance.

If you want to bequeath them something substantial, then the coin collection can be included in your will. Because it's possible it can increase in value as the years roll by, it makes for a perfect gift for your great-grandchild.

Such a legacy could also spur their curiosity and passion, leading them to want to grow their own collection as you did. The work involved in trying to figure out the value of the collection could spur their interest in the process. While they may benefit from what you have done, they will also be impacted enough to start their personal collection for their own grandchildren.

Done right, a coin collection can serve as a sound source for a college fund for your grandchild. Ensure you are keen on what you add to your treasure, as your choices will determine the value appreciation margin your coin collection might have.

The Case for Selling the Collection

Let's face it. While coin collecting is quite a normal activity, not many people recognize its value. The challenges of researching and getting rare or beautiful coins, the education and the history behind those coins, and many other factors simply won't interest the average Joe and Jane.

When the above factors collide with disinterested people who have no clue how valuable your coin collection is, it becomes disheartening and your only option is to sell the coinage. In other circumstances, you may also need to dispose of the collection to help a needy family member looking for emergency funds.

The thing about leaving your collection to other people is that they may not know the value of your collection, no matter how well-meaning they may be. If the person you are thinking of gifting the collection doesn't understand its value, it's better if you handle the selling. This will guarantee that you receive the actual current value of the collection.

The Small Matter of Tax

If you were to sell the coin collection yourself, you'd be required to pay capital gains tax on the profit you'd make. A higher profit margin attracts a greater tax amount.

On the other hand, if you were to pass down the collection, it would only be taxed should your heir decide to sell it. There are, however, some things to note. Whenever your heir assumes control of the collection, the current value at the time of assumption of control will be regarded as the new basis of the collection.

If the heir were to sell the collection at the same value they received it in, they would not be taxed. However, if they do sell it at a higher price, then they will pay tax on the profit they make.

Conclusion

If you are looking to buy a premium coin collection, or to sell yours to someone who understands and appreciates its value, then there's only one place you can do so quickly and safely. Try Coins For Sale and see what you've been missing.