Selling Collectibles? Know the Tax Rules Before You Sell
Thinking about selling a valuable coin, antique or piece of art? The tax bill may surprise you. Collectibles are subject to special rules. If you’ve held a collectible for more than one year, your gain may be taxed at 28%. But if your ordinary-income tax rate is lower (10%, 12%, 22% or 24%), that lower rate applies. By comparison, most long-term stock and mutual fund gains are taxed at 0%, 15% or 20%, depending on taxable income. If you’ve held the collectible for one year or less, any gain is short-term and taxed at your ordinary-income rate (maximum of 37%). The 3.8% net investment income tax may also apply. Before selling a collectible, contact us to discuss the tax implications.