Video: Tax Treatment of Collectibles

In this lesson, Nick Palazzolo, CPA, unpacks the nuances of the tax treatment for collectibles such as art, antiques, stamps, coins, and rare books. He clarifies how gains from the sale of these valuable and often rare items are subject to a higher capital gains tax rate than other capital assets, specifically detailing the maximum 28% long-term capital gains rate for collectibles held for over a year. Nick also describes the tax implications for short-term gains and the beneficial step-up basis received when collectibles are inherited, anchoring these concepts within the broader tax landscape that will be further explored later in the course.