Something else to consider that I haven't seen mentioned yet - if you're planning to make this a regular activity (buying and selling precious metals), the IRS might classify you as a "dealer" rather than an investor, which would change the tax treatment entirely. Dealer status means your profits would be treated as ordinary business income rather than collectibles, but you'd also be able to deduct business expenses. The IRS looks at factors like frequency of transactions, time spent on the activity, and whether you're trying to profit from short-term price movements versus long-term holding. Since this sounds like a one-off lucky find rather than an ongoing business, you should be fine with collectibles treatment, but it's worth keeping in mind if you get bitten by the precious metals bug and start doing this more regularly. Also, given that you got such an incredible deal at the estate sale, you might want to document not just your purchase but also the circumstances - photos of the original purchase, any communications with the estate, etc. While you have receipts, having additional documentation of how you acquired them at face value could be helpful if the IRS ever questions such a large gain relative to your stated basis.

Great question about dealer status frequency thresholds! The IRS doesn't have hard numerical rules, but they generally look at the "facts and circumstances" test. From what I've seen in tax court cases, people who buy and sell precious metals more than a few times per year, especially if they're actively seeking out deals to flip quickly, are more likely to be classified as dealers. The key factors the IRS considers are: 1) Frequency and regularity of sales, 2) Length of ownership (dealers typically hold for shorter periods), 3) Time and effort spent on the activity, 4) Whether you're seeking quick profits vs. long-term appreciation, and 5) Whether precious metals sales are your primary source of income or just supplemental. Generally speaking, if you're buying and holding for investment purposes and only selling occasionally, you should be fine staying in investor status. But if you start actively seeking out estate sales, coin shows, and online deals with the intent to resell quickly for profit, that starts looking more like dealer activity. For the OP's situation - one lucky estate sale find that you're selling after holding for several months definitely sounds like investor treatment. Just be mindful if you catch the precious metals bug and start doing this more regularly!

Don't forget you'll need to file Form 4562 for depreciation and amortization. If you're using software like TurboTax or HR Block they'll walk you through it, but if you're doing it yourself make sure you include this form.

Great discussion here! One thing I'd add is that for the documentation piece, you might want to consider using your Apple Watch's own data to support your business use claim. The Activity and Screen Time features can show when you're actively using business apps vs personal ones. Also, if you're using it for client meetings and calls, your calendar integration and call logs can provide solid evidence of business use patterns. This kind of built-in data tracking might be more defensible than manual logs if you ever face an audit. Just make sure to screenshot or export this data regularly since it doesn't store indefinitely. Having multiple forms of documentation (usage logs, calendar data, business app activity) creates a stronger case for your claimed percentage.

Has anyone dealt with getting a fair market value determination for a property that's in a country where real estate records aren't as accessible as in the US? My mom left me her house in Vietnam, and I'm having a hard time establishing what it was worth when she passed.

I've been through a similar situation with inherited property in France, and one thing that really helped was documenting everything meticulously from the start. Since you mentioned the inheritance process took several years, make sure you keep records of all the legal fees, transfer taxes, and administrative costs you paid during that process - these can often be added to your basis, which could reduce any taxable gain or increase your deductible loss. Also, regarding the exchange rate fluctuations you mentioned - I learned the hard way that you need to be very consistent about which rates you use and when. For the initial basis calculation, use the exchange rate from the date of death (2021). For the sale proceeds, use the rate from when you actually received the sale proceeds in 2024. The IRS has specific guidance on this, and consistency is key if you ever get audited. One more tip: if you're claiming a loss (which sounds likely in your case), make sure you can clearly demonstrate that this was truly investment property and not personal use property. Since you inherited it and sold it immediately without using it personally, you should be fine, but it's worth documenting that timeline clearly.

This has been such an informative thread! I'm actually in a very similar situation - working for a German company that just asked me for Form 6166, and I had never even heard of Form 8802 before this week. Reading through all the advice here, I'm especially grateful for the tips about checking apostille requirements upfront and using the online submission through pay.gov for faster processing. The detail about using your tax return address versus current address is something I definitely would have gotten wrong. One question for the group: has anyone dealt with situations where your foreign employer needs the certification for multiple years? My German HR department mentioned they might need certification for both the current tax year and next year. Should I request multiple years on the same Form 8802, or do I need separate applications? Also, @James Johnson - definitely curious to hear how your process goes once you get started. The two-month timeline seems manageable based on what everyone has shared, especially with the online submission option.

I just wanted to jump in here as someone who recently completed this entire process successfully! Reading through this thread brought back so many memories of my own Form 8802 confusion just a few months ago. One thing I didn't see mentioned that might be helpful - if you're submitting online through pay.gov, make sure you have a reliable internet connection and don't try to do it during peak hours (like lunch time or early evening). I had my application time out twice because my connection was spotty, and while it saved most of my progress, I had to re-enter some sections. Also, regarding the $85 fee - you can pay by credit card, debit card, or direct bank transfer through the online system. I used a credit card and the charge showed up as "PAY.GOV TREASURY" on my statement, which was helpful for tracking purposes. @James Johnson - one last tip that saved me some stress: after you submit online, you'll get a confirmation number. Screenshot that confirmation page and save the confirmation number somewhere safe! The IRS customer service reps can look up your application status using that number if you need to call them for any reason. Much easier than trying to explain your situation from scratch. Good luck with your application! Based on everything shared in this thread, it sounds like you're well-prepared now.

Has anyone used TurboTax for this situation? I'm wondering if it correctly handles Roth IRA withdrawals for education expenses or if I need to manually override something.

One thing to be extra careful about - make sure you understand the timing rules for "qualified higher education expenses." The IRS requires that the expenses be paid in the same tax year as your withdrawal, and they must be for you, your spouse, your children, or your grandchildren who are enrolled at least half-time in an eligible institution. Also, you need to reduce your qualified education expenses by any tax-free assistance you receive - like scholarships, grants, employer tuition assistance, or even American Opportunity Tax Credit amounts. So if your tuition is $10,000 but you get a $3,000 scholarship, you can only count $7,000 as qualified expenses for the penalty exception. I learned this the hard way when I forgot to subtract my Pell Grant amount and had to amend my return. The IRS caught it during processing and sent me a notice asking for clarification. Fortunately I had kept all my documentation, but it delayed my refund by several months.