What specific recordkeeping and documentation should be kept to prove cost basis and support a stepped‑up basis for inherited metals?

1. Start with the estate’s valuation and legal paperwork as primary proof

The single strongest support for a stepped‑up basis is the decedent’s estate valuation: if the estate filed an estate tax return or had property values determined for estate tax or state inheritance tax purposes, those appraisals or the Schedule A values are the baseline the IRS allows for basis determination ^{[1] [5]}, and executors should preserve wills, trust documents, probate inventories and any appraisals prepared around the date of death ^{[4] [5]}.

2. Get professional, dated appraisals that tie value to the date of death

When the estate lacks a formal estate‑tax value, a defensible alternative is a professional appraisal or dealer valuation dated as near the decedent’s date of death as possible; advisors and estate services stress that prompt, certified appraisals establish fair market value for beneficiaries and reduce the risk of an IRS challenge ^{[4] [6] [5]}.

3. Preserve transactional records: receipts, dealer invoices, bank and card statements

Original purchase receipts, dealer invoices showing premiums paid, cancelled checks, credit‑card charges and depository receipts all substantiate original cost and adjustments to basis (dealer premiums, storage) and are routinely used to calculate basis and gains when sales occur ^{[7] [8] [2]}; if receipts are missing, bank statements or dealer records can sometimes recreate the purchase trail ^[3].

4. Document custody, quantity and condition with dated inventories and photos

Because precious metals are portable and often physically moved during probate, contemporaneous inventories, serial numbers, certificates of authenticity, assay certificates, safe‑deposit records, vault receipts and dated photographs showing the metal, its markings and packaging help prove what was inherited and where it was on the date used for valuation ^{[4] [9] [10]}.

5. Reconstruct reasonable basis when records are incomplete — show “best efforts”

The IRS recognizes that heirs may lack perfect records; agents and tax‑help reporting advise assembling a reasonable reconstruction (historical spot prices, typical dealer premiums, supporting bank records, affidavits) and documenting the effort taken to locate original evidence, because the agency expects a systematic good‑faith attempt to establish basis rather than after‑the‑fact guesswork ^{[3] [2]}.

6. Keep sales documentation and report correctly on tax forms

When metals are sold, retain the dealer’s 1099 or sales confirmation, the gross proceeds, and the basis documentation to report gains on Form 8949 and Schedule D; specialists warn that the taxpayer bears ultimate responsibility for proving both sale proceeds and basis even if the dealer does not issue tax forms, and precious metals carry collectible tax treatment that can affect rates ^{[2] [11]}.

7. Watch for valuation disputes and commercial incentives

Estate advisors and wealth managers emphasize defensibility: use credentialed appraisers and contemporaneous valuations to avoid IRS disputes ^{[6] [4]}, but be aware that industry vendors and dealers have an implicit commercial agenda to encourage paid appraisals, storage, or buyback services—retain independent appraisers where possible and keep a copy of who performed each valuation ^{[4] [10]}.

8. When in doubt, document the effort and consult counsel

If records are sparse, preserving evidence of the search (calls to dealers, written requests for records, affidavits from family members, and notes of conversations with IRS agents) strengthens a reconstructed basis; published guidance and practitioner sites reiterate that meticulous recordkeeping and using a defensible valuation method are the best protection in an audit ^{[3] [2] [1]}.