Collectible sale not showing as Collectible

[dtorjor]

I did that but then the C doesn't appear next to the investment and I don't have a 28% worsheet generated either

[dtorjor]

I’m selecting collectibles in the drop down menu but the investment appears with code E and no code C at all in the capital gains worksheet, so there is something that is not working well in the system 

[dtorjor]

Moreover in schedule D is treated as a normal long term gain, not as a collectible.  Please advise, it is not working 

[DaveF1006]

@dtorjor  To clarify, are you using Turbo Tax Online of the software? I will test this out to see if I can recreate the issues you are having.

[dtorjor]

Yes, I'm using turbo tax online, I put only one asset sale as a collectible to test it with a 20,000 long term gain, income less than 80,000 for someone filling jointly and a basically get no tax on the 20,000 gain.  Thanks for your help.

[DaveF1006]

@dtorjor Yes, I did the same thing , sing a $20,000 gain with around $48,000 of AGI and my gain shows up on Schedule D and 8949 as a long term capital gain. At this point, I am not sure where your discrepancy is. Also in the 8949, it lists the name of the collectible in Box under the description of the property.  It doesn't list it on Schedule D.

Check you entries and you may wish to contact tax support at 1-800-446-8848 for further assistance if you need it. Sorry I couldn't have been more help.

[dtorjor]

Just to make sure I understand what happened to you before I call, so do you have the same issue that it is not treated as a collectible? (Zero taxes)

Thanks 

[dtorjor]

What I mean is that even though it is listed as a collectible, I don’t see a 28 percent worksheet created and the 20,000 is taxed at zero 

[DianeW777]

Depending on your filing status, you may see all of your income taxed at the same rate.  Keep in mind the 28% rate is a maximum rate that you can be taxed on collectibles. This means that if you taxable income is greater than the amounts below and your ordinary tax rate is higher than 28%, then your gain from the collectibles will not be more than 28%.

1. Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate.

Collectibles:

A capital gain rate of 28% applies if your taxable income is more than $40,400 but less than or equal to $445,850 for single; more than $80,800 but less than or equal to $501,600 for married filing jointly or qualifying widow(er); more than $54,100 but less than or equal to $473,750 for head of household or more than $40,400 but less than or equal to $250,800 for married filing separately.

@dtorjor

You will see Schedule D, Schedule D Tax and 28% Rate Gn Wks in your file.

[dtorjor]

Thanks, my understanding was that the 28 percent rate applies regardless of income level

[DianeW777]

Absolutely my pleasure. It is a maximum tax rate for the category of collectibles.  The IRS Topic 409 is the starting place to review this information. 

[dtorjor]

Thank you, makes sense.  However, when I put a 1000000 gain on a collectible (well above all thresholds), Turbo tax still doesn't generate a tax on collectibles or 28% rate worksheet.  There seems to be an issue with the system.

[dtorjor]

FYI - just touched base with a turbo tax specialist and there is an issue in the online platform that is not taking collectibles correctly, they will see if they can fix it

[TeresaM]

Yes, our team is working on making sure that collectibles have the correct Code C in Form 1099-B,  so that the calculation of their taxable gain is correct. Thank you for sharing information to help us investigate.

[Upset User]

Trying to Reply to dave F1006 but message box shows above his reply.  I do not get a box to enter Collectibles in.  I have been working on this for days...Turbo Tax has messed up big time.  I got a 1099-K for eBay Sales of Collectibles but can not find the right way to enter.  I could do this manually and just fill out From 8949 and Schedule D, but on-line takes you through sub-forms 1099-B and Capital Asset Sales where you are trying to navigate through things related to stock sales.  I finally found some codes that seemed to be going into direction of collectibles...even had some pop up forms, rather than just filling out the info in one place.  I had no financial institution on some forms and was told to correct, but could not find out where/how.  I paid for Turbo to e-file, but it's telling me I have to send all the details of the sales to somewhere in Texas...so who knows when e-filed return and mailed detail will get pulled together and when/if I will ever get my refund.   I found one place in Turbo Tax helpsaying you do not need to send detail and 2 places saying you do.  I have not had to send in the past.  Doubt after years of using Turbo Tax if i will again.