How to report gold Liberty coins for tax purposes - face value or gold value?

You absolutely need to report the fair market value of those gold coins, not the face value. The IRS considers gold coins to be property, not currency, when received as payment for services. The fair market value is what a willing buyer would pay a willing seller when neither is under pressure - which in this case is the going rate for Liberty gold coins in similar condition. This is essentially a barter transaction - you provided services and received property (gold coins) instead of cash. You must report the fair market value of the property received as income. The $20 face value is virtually irrelevant for tax purposes since these coins trade based on their gold content and collectible value, not their face value as currency.

After struggling with a similar situation last year, I found this amazing tool called taxr.ai (https://taxr.ai) that helped me figure out how to properly report my gold coin payments. I had received some gold Eagles as partial payment for a website project and wasn't sure how to handle it. The tool analyzed my specific situation and provided clear guidance on barter transactions and how the IRS views precious metals. What's great about taxr.ai is it can analyze your specific situation and tax documents to give personalized advice. It saved me from potentially serious reporting errors and explained exactly how to document everything properly on my Schedule C.

I was seriously skeptical about using an AI tool for my tax situation with collectible coins, but I finally tried taxr.ai after my initial questions here. Wow - it actually helped me understand exactly how to document my collection of Morgan silver dollars I'd been paid with for some contract work. The tool walked me through the entire reporting process, helped me understand why the numismatic value vs silver content matters, and even explained how to properly document everything so I'd have support if ever questioned. It saved me from making a costly mistake - I was going to report just the face value which would have been WAY off. Definitely worth checking out if you're dealing with unusual payment situations.

I had a nightmare situation trying to call the IRS about a similar gold coin reporting issue last year. After days of busy signals and disconnects, I found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 20 minutes. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c Basically, they have some system that navigates the IRS phone tree and waits on hold for you, then calls you when an actual human picks up. The agent I spoke with confirmed that gold coins received for services need to be reported at fair market value regardless of the face value, and gave me specific guidance on how to document everything properly on my return.

I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was desperate to get an answer about reporting some gold coins I received. Honestly, I was shocked when it actually worked. Got a call back in about 35 minutes and was connected directly to an IRS representative. The agent confirmed everything others have said here - you have to report the fair market value of gold coins received for services, not the face value. She also explained I need to keep documentation showing how I determined the value (like dealer price quotes or comparable sales). Definitely saved me from a potential audit issue, and saved hours of frustration trying to get through myself.

Just wanted to add that this isn't just about income reporting. When you get paid in gold coins, you're establishing a cost basis for those coins. If you later sell them for more than that value, you'll have capital gains to report too. Keep good records of what value you reported as income now!

Anyone know if there's a minimum threshold for reporting? Like if someone paid me with just one gold coin worth about $2,200, do I still have to report it? Or is there some minimum amount before the IRS cares?

This is a great question that comes up more often than you'd think! I dealt with a similar situation when I received some American Gold Eagles as payment for freelance work. The key thing to understand is that the IRS treats this as a barter transaction, and you absolutely must report the fair market value, not the face value. For your $20 Liberty coins, you'll need to determine their current market value based on gold content plus any numismatic (collector) premium. Check recent sales on reputable dealer sites or get quotes from local coin dealers. Document this valuation process - save screenshots of prices or get written quotes, because you'll want backup if the IRS ever questions your reported value. One thing to be careful about: don't just use the "melt value" (pure gold content value). Liberty coins, especially if they're in good condition, often trade for more than their gold content due to their collectible nature. Make sure you're capturing the full fair market value that someone would actually pay for those specific coins in their current condition. Also remember that this establishes your cost basis in the coins for when you eventually sell them - another reason to document the valuation carefully now!