JosephS1
Expert Alumni

Investors & landlords

It is possible what you say can be attributed to collectibles and therefore allowed a capital transaction.  You will need documented proof that they are collectible items instead of common antique items.  An appraisal certificate by a licensed appraisal firm or some similar letter(s) or document(s) would suffice.  

 

I have enclosed a link to the IRS page the shows the treatment of the sale of collectibles.  The IRS has the authority to deem a sale of personal property as a sale of collectibles at their discretion.  Collectible sale gains are taxed at the maximum tax rate of 28% currently so you should consider the net tax ramifications of your sales if you have the opportunity.  While personal sale losses are not deductible and collectible sale losses are, subject to the yearly maximum of $3,000 (excess loss over $3,000 is carried over to future years), the profit from personal sales is at your marginal tax rate while the collectible sales gain is at 28%.

 

Capital Gains and Losses

How are collectibles taxed?

 

@crkdad 

 

 

 

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