Newsletter

Join The Club!

FAQs
Treasure Topics

Taxation on Found Treasure - FAQ:  How will my discovered treasure be taxed? 

As a dealer of treasure hunting equipment and supplies, having an online store and a physical retail location, we get to talk to a lot of people about a wide variety of topics.  We get to hear lots of cool stories about people finding treasure, how their equipment worked in helping them, and what it took to do it successfully.  We also get a lot of questions.  When we get the same question enough times, we realize it may be time to spread some information about the subject to our followers.

One such frequently asked question is what happens when I have a significant find that may in some way trigger Uncle Sam to want his share?  Now, lets begin with a disclaimer:  I am not an attorney or accountant.  Nor do I work for the IRS.  You should always consult an expert on such matters. 

Okay, now that is out of the way, here is the gist of what I know on the topic.  In a book titled The Shallow Water Treasure Hunting – How to Manual by Robert E. Granville he covers the topic rather succinctly. 

“If you find five hundred dollars in coin and spend them, you must declare it on your income tax form for that year.  If you find a rare coin, you do not declare it until the year you sell it.

This brings up an important point.  Finding a valuable item, either jewelry or a coin can cause tax problems if you sell it immediately.  The whole about you receive for it will be taxable.  If you keep it longer than a year it will be taxed as a long term capital gain and will cost you less in taxes.  So, keep your valuables for more than a year and lessen the tax bite.

It is important that you establish the date you took possession of the item.  This can be done through a notary public.  They will furnish a statement to that effect.  No, hold it for a year.

If you donate the item t some organization, you can take the fair market value off your income in the year you gave it. 

You can also decrease your taxes by deducting all expenses in your quest for treasure.  Wader, batteries, mileage, meals, books, magazines, maps and the like will qualify.  A major item, such as a detector, can be depreciated over a period of years.  Consult the latest IRS regulations because they frequently change.  What is allowed this year may not be allowed next year.

By using the right tax tools, you can also decrease your taxes by deducting all expenses in your quest for treasure.  Wader, batteries, mileage, meals, books, magazines, maps and the like will qualify.  A major item, such as a detector, can be depreciated over a period of years.  Consult the latest IRS regulations because they frequently change.  What is allowed this year may not be allowed next year.  

When it comes to taxes…BE PREPARED.”  

Source:  The Shallow Water Treasure Hunting – How to Manual by Robert E. Granville (Granville, Robert E. (1994). The Shallow Water Treasure Hunting Manual. Chiloquin, Oregon: Granville Publications,)

Below are some more interesting articles on treasure taxation.  Enjoy!

https://www.foxbusiness.com/features/found-money-is-awesome-but-you-must-pay-uncle-sam

https://www.forbes.com/sites/robertwood/2014/02/26/couple-finds-10-million-in-gold-coins-taxes-take-half/#1a1d025f48f9

https://turbotax.intuit.com/tax-tips/general/what-to-know-about-taxes-on-found-property/L9BfdKz7N

Stay tuned to our blog for upcoming articles and episodes by following us on your favorite social media outlet to stay informed of releases:

YouTube:  HighPlainsProspectors

Facebook:  @highplainspropsectors

Instagram:  #highplainsprospectors

Twitter:  @HProspectors

You Might Be Interested In

Equinox 900 Bundles

Choose from multiple different moneys saving bundles and get the gear you need.

Sand Scoops & Beach Gear

Check out our sand and beach scoops. Several different styles available.

Coin & Relic Cleaning Supplies

Pair text with an image to focus on your chosen product, collection, or blog post. Add details on availability, style, or even provide a review.
Used Minelab Equinox 800 Metal Detector with LOTS of extra gear!
Sold out
Used Minelab Equinox 800 Metal Detector with LOTS of extra gear!

Used Minelab Equinox 800 Metal Detector with LOTS of extra gear!

Sale price
$1,200
Regular price
$1,999
The Nokta Simplex + Metal Detector Handbook by Andy Sabisch
30% off
The Nokta Simplex + Metal Detector Handbook by Andy Sabisch
2

The Nokta Simplex + Metal Detector Handbook by Andy Sabisch

Sale price
$11.95
Regular price
$16.95
Fisher F44 GWP Metal Detector with 11" DD Coil, F-PULSE Pointer, Treasure-Seeker Bundle
23% off
Fisher F44 GWP Metal Detector with 11" DD Coil, F-PULSE Pointer, Treasure-Seeker Bundle
2

Fisher F44 GWP Metal Detector with 11" DD Coil, F-PULSE Pointer, Treasure-Seeker Bundle

Sale price
$475
Regular price
$613
XP DEUS Detector with 11" X35 Coil, LCD Remote, and WS4 Wireless Headphones
39% off
XP DEUS Detector with 11" X35 Coil, LCD Remote, and WS4 Wireless Headphones
2

XP DEUS Detector with 11" X35 Coil, LCD Remote, and WS4 Wireless Headphones

Sale price
$799
Regular price
$1,292.94
Fisher F44 Weatherproof Metal Detector with Extra Free Gear
29% off
Fisher F44 Weatherproof Metal Detector with Extra Free Gear
5

Fisher F44 Weatherproof Metal Detector with Extra Free Gear

Sale price
$285
Regular price
$399
Teknetics T2 Metal Detector
30% off
Teknetics T2 Metal Detector Teknetics Metal Detectors Teknetics

Teknetics T2 Metal Detector

Sale price
$424
Regular price
$599
New, Open Box - Detector Pro Gray Ghost Amphibian II Headphones, Garrett AT Series
13% off
Detector Pro Gray Ghost Amphibian II Headphones, Garrett AT Series

New, Open Box - Detector Pro Gray Ghost Amphibian II Headphones, Garrett AT Series

Sale price
$149.95
Regular price
$172
Used and Demo Metal Detectors For Sale

Shop All

Used and Demo Metal Detectors and Gold Prospecting Equipment