is gain from sale of amine postcards collectible items

Forum|Forum|2 years ago
October 4, 2023
1 reply
11 views

Client sold some amine postcards (in Amine Convention) with long-term gains. Are they subject to 28%?

Thanks.

Lacerte Tax

This topic has been closed for replies.

Best answer by hgtc

OK, now I get it, you want to know if this is a collectible subject to the 28% rate. IRS would probably say that it is, and that they are entitled to add it to the list even after the sale is made and the return is filed. Also, that Congress meant to give them that authority. Others might say that it's not what was intended by "collectible" at all; everything is collectible, by someone. Tell your clients it's a grey area and let them decide how much risk they want to take for how much tax is involved.

Thank you.

BobKamman

Level 15

Do you mean anime? Did he buy them as an investment, or to resell and it just took longer than expected?

H

hgtcAuthor

Level 5

bought for personal purposes - investment. taxpayer is not in the business of selling.

BobKamman

Level 15

OK, now I get it, you want to know if this is a collectible subject to the 28% rate. IRS would probably say that it is, and that they are entitled to add it to the list even after the sale is made and the return is filed. Also, that Congress meant to give them that authority. Others might say that it's not what was intended by "collectible" at all; everything is collectible, by someone. Tell your clients it's a grey area and let them decide how much risk they want to take for how much tax is involved.

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