The Short Answer for CPAs
When a decedent’s coins are reported on Form 706, they are valued at fair market value on the date of death, or on the alternate valuation date if the executor elects it. If coins and other articles of marked artistic or intrinsic value total more than $3,000, an expert appraisal under oath must be filed with the return. That value generally becomes the heirs’ basis, and when the coins increased the estate tax, it must be reported consistently to the IRS and the beneficiaries on Form 8971.
An audit-proof coin appraisal for estate tax gives you an itemized inventory, photos, grades and certification numbers, the valuation date, a stated method, comparable sales and the appraiser’s credentials. Keep that file for as long as any heir may still sell a coin. Each rule below links to its source, starting with the IRS Form 706 page.
This checklist is general information for tax professionals, not tax or legal advice for any particular estate. Rules and forms change, so confirm current law before relying on any point. Figures are as of October 2026.
What Form 706 Requires for a Coin Collection
Coins are usually reported on Schedule F (Form 706), Other Miscellaneous Property. Three parts of the August 2025 revision matter most for a collection:
- Line 1. Did the decedent own any works of art, items or collections whose artistic or collectible value at death exceeded $3,000? If yes, complete line 4 and attach appraisals.
- Line 3. Did the decedent have a safe deposit box, or access to one? If any contents are left off the return, the estate has to explain why. Coins in a bank box are a common gap.
- Line 4. Each item is listed with a description, the alternate valuation date and value if elected, and the value at date of death.
Treasury Regulation 20.2031-6 adds the detail. Personal effects should be itemized, and articles in the same room worth no more than $100 each may be grouped. When articles of marked artistic or intrinsic value, which the regulation says include coin or stamp collections, total more than $3,000, the appraisal of an expert or experts, under oath, must be filed with the return. The executor also signs a statement under penalties of perjury about the completeness of the list and the disinterested character and qualifications of the appraiser. To sell or distribute coins before an IRS review, paragraph (c) calls for notice to the IRS with an appraisal under oath.
If the family is still finding coins, our guide on what to do with old coins found in an estate helps them sort and list them.
Fair Market Value, Valuation Dates and Coin Type
Under Treasury Regulation 20.2031-1(b), fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither under compulsion and both with reasonable knowledge of the facts. It is not a forced-sale price, and it is set in the market where the item is most commonly sold to the public. Our CPA guide to step-up in basis and date-of-death values covers the retail versus wholesale question in depth.
Date of Death or Alternate Valuation Date
Under IRC section 2032 and Treasury Regulation 20.2032-1, the executor may elect to value the gross estate six months after death. Coins sold, distributed or otherwise disposed of within those six months are valued as of that date. The election must reduce both the gross estate and the estate and generation-skipping transfer tax, and it covers all estate property. Ask for both values when a taxable estate holds a lot of bullion.
Bullion Versus Collectible Coins
The appraisal should sort the inventory first, because the method depends on the coin:
- Bullion. Bars, rounds and modern bullion coins are valued mainly by fine metal content: weight times the metal price on the valuation date, plus or minus the premium at which that product trades. The report should name the price source.
- Collectible coins. Rare coins are valued by date, mint mark, variety, grade, certification and demand, using comparable sales. Metal value says little about them.
For heirs, see our guide to the tax implications of liquidating bullion vs. rare coins in an estate.
Cost Basis, Step-Up in Basis and Form 8971
Under IRC section 1014(a), the basis of inherited coins is generally their fair market value at death, or on the alternate valuation date if elected. One exception is section 1014(e): coins an heir gave the decedent within one year of death and got back keep the decedent’s basis.
Section 1014(f) adds a consistency rule. When the coins’ inclusion increased the estate tax, the heir’s basis cannot exceed the final estate tax value. Under section 6035 and the Form 8971 instructions, the executor files Form 8971 with the IRS and gives each beneficiary a Schedule A listing each asset, its valuation date, its estate tax value and whether it increased the estate tax. The due date is 30 days after Form 706 is due, including extensions, or 30 days after it is filed, whichever comes first.
- Rare coins are reportable. Treasury Regulation 1.1014-10 treats U.S. dollars as excepted property, but only bills and coins worth face value. Coins with numismatic value are not excepted.
- Match the item numbers. Use the same descriptions and item numbers on the appraisal, Schedule F and Schedule A.
- No Form 706, still appraise. For decedents dying in 2026, the IRS lists a basic exclusion amount of $15,000,000 (see what’s new for estate and gift tax). Most estates file no Form 706 and no Form 8971, but the heirs still need date-of-death values to support basis.
When heirs later sell, gain on coins is generally collectibles gain, which IRS Tax Topic 409 says is taxed at a maximum 28% rate.
Qualified Appraisal Rules and Valuation Penalties
CPAs often ask whether the estate needs a “qualified appraisal” by a “qualified appraiser.” Those are terms defined in Treasury Regulation 1.170A-17, written for charitable contribution deductions. The estate tax rule for coins is the expert appraisal under oath in Regulation 20.2031-6(b). Section 1.170A-17 is still a useful model for a thorough report, and it does apply if an heir later donates coins and claims a deduction.
Penalties are the reason to document well. Under IRC section 6662(g) and (h), a value claimed on an estate tax return of 65% or less of the correct value is a substantial understatement, subject to a 20% penalty when the resulting underpayment exceeds $5,000. At 40% or less, it is a gross misstatement and the rate becomes 40%. Section 6695A imposes a separate penalty on appraisers whose values lead to these understatements. A well-supported report protects everyone who signs.
The Audit-Proof Documentation Checklist
Use this list to review a coin appraisal before it goes in the return or estate file:
| Record | What to include | Why |
|---|---|---|
| Itemized inventory | Denomination, date, mint mark, variety and quantity for each coin or tightly defined lot, numbered to match Schedule F line 4 | Reg. 20.2031-6; Schedule F |
| Photos | Front and back of the better coins and of each holder label; bulk lots shown as lots | Identity and condition |
| Grade and certification | Grading service and certification number for certified coins; the appraiser’s grade for raw coins | Grade drives value |
| Valuation date | Date of death or alternate valuation date, and the dated metal price source for bullion | Sections 2031 and 2032 |
| Valuation method | The market relied on, such as auction records, retail sales or spot plus premium, and why | Reg. 20.2031-1(b) |
| Comparable sales | The sales, sources and dates behind each significant value | Supports the value on exam |
| Appraiser credentials | Experience, qualifications, a signed and dated statement and no interest in the estate | Reg. 20.2031-6(b) |
| Basis tie-out | Item numbers carried from the appraisal to Schedule F and Schedule A (Form 8971) | Sections 1014(f) and 6035 |
| Sale records | Bills of sale and payment records for anything the estate or heirs sell | Gain or loss later |
How Long to Keep the File
The IRS page on how long to keep records says to keep records relating to property until the period of limitations expires for the year you dispose of it. The general assessment period under section 6501(a) is three years after the return is filed, and longer periods apply in some cases. Keep the estate’s appraisal with the workpapers and give each beneficiary a copy, since it supports their basis until years after their last sale.
How American Rarities Helps Your Client
Founded in 1990, American Rarities has purchased over $400 million in rare coins, bullion and collectibles. We can:
- Prepare a formal, itemized date-of-death appraisal for any historical date, with photos, grades, certification numbers, the method and the comparable sales used.
- Work with the executor and keep you copied, so item numbers match your schedules.
When there is no plan to sell, the formal report is a fee-based engagement. If the estate is considering a sale, our appraisal and written offer are free. See our page on IRS-compliant numismatic appraisals for CPAs, or send heirs to how to sell inherited coins. Every estate guide we publish is collected on our coin appraisals for CPAs and estates page.
Four Steps for an Estate
- 1
Send Photos and/or a List
Send photos or an inventory with the form below, by text to 720-600-4740 or by email. Tell us the date of death and whether you need a formal report, an offer or both.
- 2
Free Appraisal and Written Offer
Appraisals are usually done within 24 hours. A formal, itemized date-of-death report is available on request, separate from any offer to buy.
- 3
Ship Insured or Meet in Person
Ship fully insured, or meet us in person for larger estates anywhere in the country.
- 4
Get Paid
If the executor accepts, we pay immediately by cash, check, ACH or wire, with an itemized bill of sale for the estate file.
American Rarities holds a 4.7-star Google rating and an A+ rating with the BBB, we are ANA Life Members, and we are an authorized PCGS, NGC and ANACS dealer.
You can also call 800-622-5680. Calls go to our answering service, so leave a message and we will call you back. Or visit our contact a rare coin buyer page.
Coin Appraisal for Estate Tax: Frequently Asked Questions for CPAs
Does a coin collection need an appraisal for Form 706?
Yes, when coins and other articles of marked artistic or intrinsic value total more than $3,000. Treasury Regulation 20.2031-6(b) requires an expert appraisal under oath with the return, and Schedule F line 1 asks for appraisals to be attached.
Does the estate need a “qualified appraisal” under the charitable rules?
The qualified appraisal and qualified appraiser definitions in Treasury Regulation 1.170A-17 are written for charitable contribution deductions. For estate tax, the rule for coins is the expert appraisal under oath in Regulation 20.2031-6(b). Many practitioners still use 1.170A-17 as a checklist for report contents.
Do rare coins go on Form 8971 and Schedule A?
Generally yes, when the estate is required to file Form 706. Treasury Regulation 1.1014-10 excepts U.S. dollars only at face value, and coins with numismatic value are not excepted. Check the Form 8971 instructions for the other exceptions.
What if the estate is too small to file Form 706?
Then there is usually no Form 8971, but section 1014 still sets the heirs’ basis at date-of-death fair market value. An itemized appraisal is their best evidence of basis.
How long should the coin appraisal be kept?
The IRS says to keep property records until the period of limitations expires for the year the property is disposed of. For inherited coins, that means keeping the estate appraisal until several years after the last heir sells.
Can American Rarities appraise the coins without buying them?
Yes. We prepare formal, itemized date-of-death appraisal reports for any historical date. When there is no plan to sell, we charge a competitive hourly or flat fee. If the estate is considering a sale, our appraisal and written offer are free.
Free Appraisal for Your Client’s Estate Coins
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Email: staff@americanrarities.com | Text: 720-600-4740
