Submitted By: Paul
Answered: January 31, 2012 2:11 pm

I received a gift of gold jewelry, which I sold to a gold dealer. Is the money I received taxable?

Maybe. It depends whether you had a gain or loss on the sale (the difference between your tax basis and what you received for the jewelry. You need to know your tax basis in the jewelry. Usually, your tax basis for a gift is the donor’s basis (this may be what the donor paid for the item he or she purchased for you). If you had a loss on the sale, you cannot deduct it.

Tax Glossary

Holding period

The length of time that an asset is owned and that generally determines long- or short-term capital gain treatment.

More terms