The Expense of Discovering a Gold Treasure Chest
Many of us have dreamt of stumbling upon hidden wealth. Perhaps it’s as simple as digging in your garden and uncovering a chest overflowing with gold, or discovering something extraordinary along the shore. However your imagination paints it, the fantasy often concludes with finding the treasure and enjoying a life of ease. But have you considered the implications in terms of legality and costs? Just how much of that newfound wealth will really belong to you?
Are you allowed to keep what you find?
The saying “Finders keepers, losers weepers” seems to suggest a straightforward rule regarding ownership of found treasures. But the reality is more complex. According to common law in the U.S., a treasure trove is indeed attributed to the finder, but variations exist between states.
In Texas, for instance, this common law principle is not accepted. Louisiana stipulates that any found treasure should be divided between the discoverer and the landowner. In states like Tennessee and Idaho, ownership of the treasure remains with the property owner.
In most jurisdictions, you are obligated to make an earnest attempt to return any found items to their rightful owner, typically starting with notifying local law enforcement. If no one makes a claim after a specified duration, it becomes yours. If you neglect to report your find or take steps to return it, you could be charged with theft. Additionally, if your treasure has ties to illegal activity, the state may assert a claim if the original owner cannot be identified.
It’s crucial to ensure your actions are legally sound before considering what to do with your newfound riches.
Understanding your share of the treasure
How much you’ll actually retain from your treasure discovery is contingent on what it is and where it’s located. Consider the case of the Schmitt family, who discovered a treasure chest during a shipwreck dive in 2015.
This chest was filled with coins and gold worth over $1 million, signaling a major fortune. However, the state they discovered it in, Florida, takes 20 percent of that amount by legal mandate, and since the wreck was owned by Queens Jewels, LLC, the remaining wealth had to be shared equally between the company and the Schmitts. Thus, their initial find was reduced to a net of $400,000.
If by chance you find your treasure on unclaimed land and reside in a state that supports treasure trove laws, you may fare better. However, do remember—you’ll still need to pay taxes on it.
Reporting your treasure’s value to the IRS
Taxes can sometimes be an unwelcome surprise, and they loom large when it comes to your treasure. According to IRS Code Section 61, “gross income includes all income from whatever source derived.” While buried treasure isn’t explicitly covered, the IRS has constructed the code broadly enough to classify valuable finds as taxable income. And rest assured, a discovery of coins or jewels will definitely catch the attention of the IRS. While you can seek deductions to ease your tax load, remember that tax evasion is risky—if your lifestyle suddenly appears extravagant relative to your reported income, the IRS may raise an eyebrow. (For more unconventional taxable items, see: 35 Bizarre Things You Can Be Taxed On)
Know your treasure and how to sell it
Once you’ve navigated the legalities and the treasure is officially yours, the next step is to sell what you’ve found while keeping in mind your obligation to report the income. What are your choices?
Firstly, it’s paramount to assess what you actually possess. Not all gold coins or jewelry hold equal value. You might stumble upon an artifact of significant historical value or a piece crafted by a renowned designer, making it worth exponentially more than the standard gold price. If these items are determined to be collector’s pieces, the best course would likely be an auction, where you’ll need to account for the auction house’s commission.
Conversely, if you simply have a quantity of gold at market value, seek legitimate selling channels. A trustworthy jeweler local to you would be a good starting point, as their livelihood revolves around selling jewelry rather than trading gold, reducing the risk of being shortchanged. Steer clear of “cash for gold” establishments as they’ll aim to offer you the lowest possible payouts. The same caution applies to pawn shops, whose owners may not fully appreciate the value of what you have to offer. Be well-informed about the quality of your gold; for instance, 24-carat gold will fetch the highest price.
Ultimately, finding a treasure is a stroke of luck, but unless you’re prepared to navigate the legalities, you may not keep all of it.
