Inherited Coins in Texas and Taxes
Texas has no state inheritance tax and no state income tax, so you owe Texas nothing on inherited coins. Federal estate tax only reaches estates above a high exemption that changes yearly. Your tax basis usually steps up to the coins' value on the date of death, so federal tax applies only to gains above that value when you sell.
Read this first
This guide is general information, not tax or legal advice. We buy and appraise coins. We are not CPAs or attorneys. Tax rules change, and the right answer for your family depends on the size of the estate, how the coins passed to you and your own tax picture. Before you file a return or make a large sale, talk with a CPA or an estate attorney, and bring them the records described below.
No Texas inheritance tax and no state income tax
Texas does not tax heirs for receiving property. The state once had an inheritance tax tied to a federal credit, but that credit phased out in 2005 and the Legislature repealed the Texas statute in 2015. Texas also has no personal income tax, so the state takes nothing when you later sell inherited coins at a gain.
That leaves federal rules. There are two separate federal questions: whether the estate owes estate tax, and whether you owe income tax on a gain when you sell.
Federal estate tax is a concern only for large estates
Federal estate tax is charged to the estate itself, before property goes to the heirs. It applies only when the total estate, including the house, accounts, retirement funds and coins, is worth more than the federal exemption. That exemption is high and changes from year to year, so most Dallas families owe no federal estate tax at all.
Coins still count toward the total at fair market value on the date of death. If the estate is large enough to need a federal estate tax return, the executor will need a proper appraisal of the coins. Even for smaller estates, a surviving spouse sometimes files a return for other reasons, so ask the estate's CPA whether one makes sense.
Stepped-up basis: the rule that helps heirs most
Basis is the starting value used to figure gain or loss when you sell. For coins your parent bought, their basis was what they paid. When you inherit those coins, your basis generally resets to their fair market value on the date of death. That reset is called a stepped-up basis. In some estates that file a federal return, the executor can choose a value six months later instead.
Here is a simple made-up case. A father bought a gold coin decades ago for $100. It was worth $1,000 the day he died. His daughter inherits it and later sells it for $1,100. Her taxable gain is $100, not $1,000, because her basis stepped up to $1,000.
Texas is a community property state, and that can help a surviving spouse. Under federal rules, both halves of qualifying community property may receive a stepped-up basis when the first spouse dies, not just the half that belonged to the spouse who passed. Ask your CPA whether this applies to your coins.
- Inherited coins: basis generally steps up to the date-of-death value.
- Coins given to you while the owner was alive: no step-up. You usually take the giver's original basis, which can mean a larger gain when you sell.
- Coins you bought yourself: your basis is what you paid.
The 28% collectibles rate
The IRS treats coins and precious metal bullion as collectibles. Long-term gains on collectibles are taxed at a top federal rate of 28%, higher than the top rate on stocks. If your ordinary income tax bracket is lower than 28%, the lower rate applies to that gain. Higher earners may also owe the 3.8% net investment income tax.
Inherited property is treated as held long term no matter how soon you sell it, so you do not need to wait a year. The table shows how common situations are generally treated.
| What happens | General federal treatment |
|---|---|
| You sell soon after death for about the date-of-death value | Little or no gain to report |
| You sell later for more than the stepped-up basis | Long-term gain on the difference, taxed at collectibles rates up to 28% |
| You sell for less than the stepped-up basis | Possibly a capital loss. Ask your CPA how it applies to you. |
| You spend old coins at face value | No gain |
| The coins were a lifetime gift, not an inheritance | No step-up. Gain is measured from the giver's original basis. |
Why a dated, written appraisal matters
Stepped-up basis only helps if you can show what the coins were worth on the date of death. A dated, written, item-by-item appraisal made close to that date is the cleanest proof. It lists each coin, its grade or metal content, and the value based on the spot price and dealer market at the time.
The same document serves other jobs. Texas executors often have to file an inventory and appraisement of estate property with the probate court. Heirs splitting a collection need a fair list to divide from. Insurance needs a value too. If months have passed, an appraisal can still be built around the date of death using that day's spot prices, but the sooner you have one, the easier it is to defend.
Records to keep
- A copy of the death certificate showing the date of death.
- The dated, written appraisal of the coins.
- Photos of the collection as you found it, including albums and boxes.
- Any original purchase receipts, especially for coins that were gifts rather than inheritance.
- A list of who received which coins if the collection was divided.
- The written offer and receipt for every sale, with the date and price.
- Notes from conversations with the executor, CPA or estate attorney.
Want a real number?
See how we handle selling an inherited coin collection in Dallas, or call (469) 754-8608 for a free appraisal.
Inherited coins and Dallas County estates
Most of the inherited collections we see in Dallas come from parents who saved coins quietly for fifty years: silver dollars from the bank, proof sets ordered by mail, a few gold coins bought when someone first got worried about inflation. The heirs are usually busy, often living in different states, and trying to close out a house in Kessler Park or Richardson Heights while the paperwork piles up.
If the estate is going through one of the Dallas County probate courts, the executor may need an inventory with values for everything, coins included. Heirs who plan to split a collection need numbers they can trust so nobody feels shortchanged. And if anyone sells later, the CPA will ask what the coins were worth on the date of death. One written appraisal can answer all three.
We prepare written, item-by-item appraisals for probate, insurance and dividing an estate among heirs. Each coin is checked for date, mint mark, grade and eye appeal. An XRF reader confirms metal content on screen, and weights come from a scale inspected by the Texas Department of Agriculture. Metal values tie to the live spot price, and we can note the date the values reflect. We do not give tax advice, so take the appraisal to your CPA or estate attorney.
Timing matters here more than people expect. Gold and silver prices move every day, and the value on the date of death may be quite different from the value a year later when the house finally sells. A dated appraisal locks in that first number for your records, whatever the market does next, and it keeps the family from arguing over who got the better half.
There is no rule that you have to sell. Many families get the appraisal first, talk with their advisers and decide later. When you are ready, a free appraisal comes with a written offer you can accept, decline or take home to think about. For large estates, call to set up a home appointment. Reach us at (469) 754-8608, Monday to Friday, 9am to 5pm.