topic Is the sale of a classic car held for more than a year taxed as a collectable or as a long term taxable gain? in Deductions & credits

Is the sale of a classic car held for more than a year taxed as a collectable or as a long term taxable gain?

berghold — Mon, 03 Jun 2019 19:03:18 GMT

This would be classified as the sale of a collectible.

JohnW15 — Mon, 03 Jun 2019 19:03:20 GMT

This would be classified as the sale of a collectible.

Re: This would be classified as the sale of a collectible.

livoniabill — Mon, 03 Feb 2020 21:31:53 GMT

In reporting the sale of my collectible car, should I use the Restoration costs added to the original purchase price? I sold the car for a lot less money and experienced a $ Loss.

Re: Is the sale of a classic car held for more than a year taxed as a collectable or as a long te...

JohnB5677 — Mon, 03 Feb 2020 21:53:09 GMT

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