Question
Early in March 2019, Tom and Mary scheduled a meeting with you to discuss a potential tax problem. Tom and Mary purchased a 40-acre parcel
Early in March 2019, Tom and Mary scheduled a meeting with you to discuss a potential tax problem. Tom and Mary purchased a 40-acre parcel of property and house in 2013 for $200,000. In 2014, they built a swimming pool for $40,000. In 2018, they sold their house for $500,000. In January of 2018, while walking on a remote part of their property, they spotted something shiny on the ground. They started digging and eventually unearthed eight metal cans containing more than 1,400 rare gold coins. The face value of the gold coins is about $28,000. They turned the coins over to the State. When no one claimed it, the State turned it back over to them.Tom and Mary would like to know their income tax implications for the sale of the house and the ownership of the gold coins.
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