A man at my work intentionally tipped me with a rare coin worth several thousand dollars. In the event that I sell it, what should I expect down the line? Do I need to put some away for taxes?
I’ve never had a ‘windfall’ before. I’m taking the coin to be appraised and graded this week, but based on previous auction sales and the condition it should go from anywhere between $3,000 to $8,000. What should I do if it sells? I don’t want to use all of the money to pay off my car if I’m going to owe a sizeable portion of it to Uncle Sam come April. Thoughts?
Edit 1: It wasn’t a tip. That was a poor choice of wording since I forgot they are taxed differently. I would consider this a gift.