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

This would be classified as the sale of a collectible.

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.

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