Dear Liz: Regarding the inherited gold coins question, why would anybody tell the IRS they inherited coins and subject themselves to a 28% capital gains tax? That seems very illogical. Answer: To clarify, the original reader was asking about selling gold coins which had risen dramatically in value since she inherited them. Coins are considered collectibles so […]
Recent Blog Posts
Q&A: Is a spouse responsible for a cosigned loan?
Dear Liz: Before we were married, my spouse co-signed for two student loans for a relative. The loans have not been paid off. Occasionally the former student is late and my spouse is contacted. If I survive my spouse, who has end stage kidney disease, will I be responsible for the debts if the relative defaults? […]
Q&A: Should I get a home appraisal when my spouse dies?
Dear Liz: When one spouse dies, the couple’s primary residence gets a step-up value to the current market value (in California). So how is that value established for future reference? Is it necessary to get a formal appraisal or are current sales comparisons sufficient? Also, is that step-up value the basis for any future home sale […]
Q&A: How will higher savings rates affect my taxes?
Dear Liz: I have a savings account of $200,000 earning barely any interest. I would like to move it into certificates of deposit, but I’m afraid I’ll end up owing on my taxes. Would the interest I earn offset any tax liability? Answer: Of course. The taxes you pay on would only be a portion of the […]
Q&A: Should I get Medicare supplemental insurance?
Dear Liz: I’m about to retire and have decided on original Medicare with a Medigap policy rather than Medicare Advantage. Can a Medigap company cancel your medical plan, and can they deny a medical procedure? Are there extra charges for preexisting conditions or other coverage issues? Answer: Medigap is another name for Medicare supplement insurance. This coverage […]
Q&A: Can I make up for my spouse starting Social Security too early?
Dear Liz: My husband is 13 years older than I. Unfortunately, when he went in to sign up for Medicare several years ago, the clerk talked him into taking his Social Security as well since he had reached full retirement age. Now I am wondering when to take mine. My benefit at full retirement age would […]