If you sold a collectible asset during the tax year, you may need to report the sale as a capital gain or loss on your federal tax return. When a collectible is held for more than one year before it's sold, any gain may be subject to a special maximum tax rate of 28%.
For tax purposes, collectibles can include a variety of tangible personal property.
What Is Considered a Collectible?
The IRS generally considers the following items to be collectibles:
- Works of art
- Rugs
- Antiques
- Precious metals, such as gold, silver, or platinum bullion
- Gems and precious stones
- Stamps
- Coins
- Rare wines and certain alcoholic beverages
- Other tangible personal property classified as a collectible under IRC Section 408(m)
If you're unsure whether an item qualifies as a collectible, review the IRS guidance or consult a tax professional.
How Are Collectible Gains Taxed?
Net capital gains from the sale of collectibles are generally subject to a maximum federal tax rate of 28%. This special rate applies to eligible long-term gains and is calculated separately from other capital gains reported on your return.
Keep in mind that deductible losses from collectible sales are generally treated the same as other capital losses and may help offset capital gains.
Where Do I Report a Collectible Gain in TaxSlayer?
To complete the 28% Rate Gain Worksheet in TaxSlayer:
- Select Federal.
- Select Income and choose My Forms.
- Select Investments.
- Choose Other Capital Gains Distributions.
Enter the applicable collectible gain information as shown on your tax documents.
Before You File
Review your sales records and supporting documents to ensure the gain or loss is reported correctly. If you sold multiple investment assets during the year, including collectibles, compare your entries to your brokerage statements and Forms 1099-B before filing your return.