Buried Treasure
Most of us are not treasure hunters so the chances of you actually discovering a treasure are pretty slim. However, if by some fortunate circumstances, you unearth a stash of gold coins in your backyard or discover some sunken treasure while deep-sea diving, you’ll have to give a part of the loot to the IRS.
According to the IRS, if you find and keep lost or abandoned property that doesn’t belong to you, also known as “treasure trove”, the property is taxable by its fair market value in the first year it was in your undisputed possession.
The “treasure trove” rule was first implemented in 1964, when a couple discovered $4,467 in a used piano they had initially bought for $15. The IRS asked for a piece of the proceeds and a U.S. District Court agreed.
