When it comes to selling collectibles, you may be subject to a long-term capital gains tax rate of up to 28%, if you dispose of the item after more than one year of ownership. If you keep the item for one year or less, then it is subject to ordinary tax rates. Unfortunately, tax law prohibits deductible expenses and similar exchanges of collectibles. Uncle Sam taxes almost every asset sold, and collectibles are no exception.In fact, collectibles are currently subject to one of the highest federal tax rates on investment property.
The long-term capital gain from the sale of a collector's item is taxed at 28%.
