Does the IRS consider vinyl records collectibles?

[vb245]

Straightforward question here.  The IRS definition of a collectible is extremely vague outside of what they specify. Do they consider vinyl records collectibles? I know collectibles tax is much higher than normal but does it affect me if these are long term capital gains and I am a single filer with an income of less than $41,000. I am basically in the bracket where I pay 0% on long term capital gains. Would this change if it were determined to be a collectible? 

[MinhT1]

The IRS definition of collectibles is as follows:

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).

So in theory the IRS may rule that vinyl records are collectibles. For collectibles, the top tax rate for long term capital gains is 28% instead of 20% for non-collectibles. This rate applies when taxable income exceeds $459,750 (Single) or $517,200 (MFJ).

So, in your case, you will not be affected by the top rate of 28%.

Long term capital gains are taxed at 0% if your tax bracket is 12% or less (less than $41,675 of taxable income for Single or MFS or less than $83,550 of taxable income for MFJ)..

However, long term capital gains are included in your taxable income for the calculation of your tax bracket, and that part of long term gain which crosses over $41,675 (Single or MFS) or $83,550 (MFJ) is taxed at 15%.

[fanfare]

If your record is worth more than $300 (arbitrary) I'd say it is collectible.

Otherwise, not.

In any case, if you sell it for a Long Term gain, that is taxable. That should be enough for the IRS.