An automobile is not considered a collectable based on IRS Section 408 (m) and would be taxed at the Capital Gain rate.
Definition of a Collectible
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).
Gold, silver, platinum, palladium, and coins
The following coins and metals are not included in the definition of “collectible” under IRC Section 408(m):
- Certain gold, silver, or platinum coins described in 31 USC Section 5112. See IRC Section 408(m)(3)(A) for the full definition.
- Any coin issued under the laws of any state.
- Any gold, silver, platinum, or palladium bullion of a certain fineness if a bank or approved non-bank trustee keeps physical possession of it. See IRC Section 408(m)(3).
IRS Investment in Collectibles
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