Do collectibles come with taxes?
That's what a writer on the subject of classic pamphlets is telling at CPA Practice Advisor, while discussing the usual price values:
If you are fortunate enough to have such a valuable item, be prepared to send some of your bounty to the IRS, said Garrett Wagner, a CPA. He says this is because the income from the sale of a collectible, whether art, coins, comic books, sports cards, memorabilia, or other items, is treated as long-term capital gains when owned for more than a year. The collectibles tax rate is specifically set at 28%.I wonder if this is why some speculators, as spoken about before, end up selling the classics they bought at auctions for even higher sums on the market shortly after buying them? It provides another explanation why all this speculator business has long gotten way out of hand, and is plain silly. So speculators buy classic pamphlets stored in slabbed plastic, but only for a short time and then sell them off to avoid paying potential taxes? Good grief. No wonder the market's such a joke.
Many states also have their own tax on such income, ranging up to 10%. For the Kansas collector above, the state tax rate would have been 3.1% to 5.7%, depending on their household income.
Labels: history, msm propaganda, sales
