taxes on sale of collectible items

[ProSe]

I live in New Mexico.

In going through the estate of Grandma, I have discovered postage stamps and Elvis memorabilia. I want to sell them. Do I have to pay taxes on sale amount?..... They're potentially worth a high dollar, but sitting in a dusty box, they have zero value.

Please help. Thanks!

 

[loku]

You have to pay tax on the gain from the sale, if there is a gain. The gain, if any, is equal to the sale price of the stamps less the basis of the stamps. The basis is their fair market value at the date of your Grandmother’s death. Most likely the best indication of that value is what you can sell them for now.

 

[Seanscott]

The value of the collectibles should already have been included in the assessment of her estate.

Personally, I think the gains would be minimal.

Most people do not declare this on their taxes, although they are supposed to.