The IRS definition of collectibles is as follows:
Collectibles under IRC Section 408(m)(2) include:
- Any work of art,
- Any rug or antique,
- Any metal or gem (with limited exceptions, below),
- Any stamp or coin (with limited exceptions, below)
- Any alcoholic beverage, or
- Any other tangible personal property that the IRS determines is a "collectible" under IRC Section 408(m).
So in theory the IRS may rule that vinyl records are collectibles. For collectibles, the top tax rate for long term capital gains is 28% instead of 20% for non-collectibles. This rate applies when taxable income exceeds $459,750 (Single) or $517,200 (MFJ).
So, in your case, you will not be affected by the top rate of 28%.
Long term capital gains are taxed at 0% if your tax bracket is 12% or less (less than $41,675 of taxable income for Single or MFS or less than $83,550 of taxable income for MFJ)..
However, long term capital gains are included in your taxable income for the calculation of your tax bracket, and that part of long term gain which crosses over $41,675 (Single or MFS) or $83,550 (MFJ) is taxed at 15%.
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