What are the tax implications of selling my collectibles?

What are the tax implications of selling my collectibles?

When you sell collectibles, you may be subject to capital gains tax on any profit you make.

How do I determine the capital gains on my collectibles?

To determine capital gains, subtract your original purchase price from the selling price. If you made a profit, that's your capital gain.

Are there any exceptions or special rules for collectibles?

Yes, collectibles are often taxed at a higher rate, and there are specific rules for items like art, coins, and antiques.

What records should I keep for tax purposes?

You should keep records of purchase prices, sale prices, and any expenses related to the sale, like auction fees.