How Are Collectibles Taxed?
Collectibles are taxed differently depending on whether they are held for investment or resale.
Collectibles held for resale would indicate dealer status and these items would be inventory that would be taxed as ordinary income at marginal tax rates up to 37%.
Collectibles held for investment would be treated as capital assets. Collectibles held over one-year would receive a 28% maximum capital gains rate rather than the 20% maximum capital gains rate provided to other capital assets.
If you are enjoying my tax and finance tips and would like to buy me a beverage