The dream of stumbling upon hidden treasure is something many of us share. Whether it’s unearthing a chest full of gold in our backyard or finding something washed ashore at the beach, we often envision a story where we discover wealth and live happily ever after. However, it’s important to consider the legalities and costs associated with such discoveries. How much of that treasure can you actually keep?
First, what are the legal implications of claiming treasure?
The saying “finders keepers, losers weepers” might seem applicable to treasure hunting, but the reality is more complex. In the United States, common law generally holds that the finder of a treasure trove is entitled to the find, though there are important variations in different states.
For instance, Texas does not adhere to common law regarding treasures. In contrast, Louisiana mandates that any discovered treasure be divided between the finder and the landowner. Similarly, in Tennessee and Idaho, the landowner retains rights to the treasure.
In several states, there is a legal obligation to make reasonable attempts to locate the original owner of the found treasure. This typically involves reporting the find to local authorities. If the treasure goes unclaimed after a designated time, it becomes yours. However, failing to report it or trying to keep it hidden could lead to theft charges. Additionally, if the treasure is linked to criminal activity, it could be confiscated by the state if the rightful owner is unavailable.
Thus, it is prudent to understand the legal ramifications before thinking about spending any portion of your newfound wealth.
What portion of the treasure can you rightfully claim?
This will largely depend on what you discover and the jurisdiction in which you found it. A notable example is the Schmitt family, who uncovered a treasure chest from a shipwreck in 2015.
Containing coins and gold valued at over $1 million, it seemed they had struck gold. However, because the shipwreck was located off the Florida coast, the state claimed 20 percent of the total value, and because the wreck was owned by a company named Queens Jewels, LLC, the remaining treasure had to be split equally between the company and the Schmitts. As a result, their potential windfall was reduced to approximately $400,000.
In a more favorable circumstance, you may find your treasure on unclaimed land and reside in a state that recognizes treasure trove laws. However, you will still have the IRS to contend with…
Don’t forget to report your treasure’s value to the IRS
Taxes can certainly dampen the excitement of your discovery. According to IRS Code Section 61, “gross income” includes earnings from all sources. While the code does not explicitly mention hidden treasures, it is broad enough to encompass any finds deemed income by the IRS. Discovering valuable coins or gemstones will certainly attract IRS attention. While there may be legal options to offset your tax burden, avoiding tax responsibilities entirely is not advisable. If your newfound wealth leads to an extravagant lifestyle contrasting with your previous financial situation, it could raise red flags with the IRS. (See also: 35 Bizarre Things You Can Be Taxed On)
Understand what you have and how to liquidate it
Once you’ve navigated the legalities, you’ve secured ownership of your treasure and are ready to sell it for cash, earning for which you’ll also need to notify the IRS. What options do you have?
First, it’s crucial to ascertain the true nature and worth of what you’re selling. Not all gold coins or jewelry hold the same value. Some items may possess historical significance or could be crafted by renowned designers, making them much more valuable than just their gold content. If you discover you have collectible pieces, an auction might be the best route, though you’ll need to account for the auction house’s commission.
If you’re looking to sell simply valuable gold, your best bet is to approach a reputable jeweler nearby, as they generally focus on sales rather than bulk gold trades and are less likely to shortchange you. Be cautious of “cash for gold” establishments, which often offer significantly lower prices, as well as pawn shops that may lack the expertise to evaluate your items properly. Research the type of gold you possess; for example, 24-carat gold will fetch a higher price.
A treasure trove is indeed a fortunate find, but remember, you won’t be able to keep the entire amount unless you’re willing to operate outside the law and face the possible repercussions.
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