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To determine the cost basis of jewelry you’re selling, you need to know its original purchase price, including sales tax. If you inherited it, the cost basis is generally the fair market value on the date of the deceased’s passing. For gifted jewelry, it’s typically the donor’s adjusted basis. Keep records of purchase receipts, appraisals, and any documentation related to inheritance or gifting. This cost basis is important for calculating capital gains taxes on the sale. Consulting a tax professional is advisable for complex situations or high-value items.
