What is Collectibles gain?
In short
Long-term gain on collectibles, such as art, antiques, stamps, coins, gems and precious metals, is taxed at a maximum rate of 28%, rather than the usual 20% maximum for long-term capital gains.
Key takeaways
- Investment products holding physical precious metals can also be collectibles.
- Short-term collectibles gain is taxed at ordinary rates.
- The taxable part of a gain on qualified small business stock is also taxed at up to 28%.
Where it's tested
REG: Property Transactions: Gains, Losses & Like-Kind Exchanges — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A business sells equipment for $55,000. Original cost was $50,000 and accumulated depreciation was $30,000. How is the gain characterized?