7717 / Is a “rare” coin or currency money or “property”? How will it be valued when it is used in a taxable transaction?

Rare (numismatic) coins or currencies that have been removed from circulation and coins or currencies in circulation that have a numismatic value in excess of face value are “property other than money” for purposes of the federal income tax.¹

As “property other than money,” a rare coin or currency will be valued at its fair market value (FMV) rather than face value when it is used in a taxable transaction. Thus, where a taxpayer “sold” real property with a tax basis of $2,000 for silver coins having a face value of $2,000 and a FMV of $6,000, the taxpayer realized a $4,000 taxable gain in the transaction.² Similarly, a dividend paid to a taxpayer in U.S. Double Eagle $20 gold coins having a total face value of $5,500 had to be reported as $70,396 of dividend income.³ Also, an individual who receives compensation for services rendered in the form of rare but circulating coins or currencies that have a FMV in excess of their face value must include the higher FMV in income.⁴