Is an antique car considered a collectible regardless of condition? The car never was in running condition and was not purchased as an investment.

Forum|Forum|7 years ago
June 6, 2019
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Not necessarily. It would only be classified as a collectible item (and subject to higher capital gains rates on a profitable sale), if that is the main reason why you purchased it: an investment.

Otherwise, if you simply bought the automobile as a personal "fix it" project, or a hobby item (or even as transportation if it had been running), then the proper tax category would be to consider the automobile an item of personal property.

That distinction, however, would only really matter if and when you sold the car; or if you experienced a casualty loss and needed to clarify the automobile's status. For instance, in TurboTax, if you sold the car, you would make a data entry similar to the screen capture image below, depending on whether your consider the car a collectible or personal property; simply click the image to open.

Thank you for asking this question.

Anonymous

Answer

Not necessarily. It would only be classified as a collectible item (and subject to higher capital gains rates on a profitable sale), if that is the main reason why you purchased it: an investment.

Thank you for asking this question.