The IRS views most collectibles, other than those held for sale by dealers, as capital assets. As a result, any gain on the sale of a collectible that you’ve had for more than one year generally is treated as a long-term capital gain.
But while long-term capital gains on most types of assets are taxed at either 15% or 20% (or 0% for taxpayers in the 10% or 15% ordinary-income tax bracket), capital gains on collectibles are taxed at 28% (or your ordinary-income rate, if lower). As with other short-term capital gains, the tax rate when you sell a collectible that you’ve held for one year or less typically will be your ordinary-income tax rate.
Determining the gain on a sale requires first determining your “basis” — generally, your cost to acquire the collectible. If you purchased it, your basis is the amount you paid for the item, including any brokers’ fees.
If you inherited the collectible, your basis is its fair market value at the time you inherited it. The fair market value can be determined in several ways, such as by an appraisal or through an analysis of the prices obtained in sales of similar items at about the same time.
The IRS required you to fill out a Form 8949 and a Schedule D for the sale of this item. These can be found under the section "Personal" tab, "Personal Income" section (which should be the first page that opens up, then scroll down the page to find "Investment Income" 1099-B. This will guide you through the process.
Here is a link to some neat information I thought you'd also like to read over. Congrats on the sale, by the way!
Advice On Depreciation To Reduce Gain On Sale Of Instrument
