IRC §408(m) · §1(h)(4) · 28% rate

Collectibles Capital Gains

That gold ETF, that coin collection, that Banksy, they don't get the 20% LTCG rate. They get 28%. Surprise.

2024 Tax Picture
Realized gain
$0
Applicable rate
28%
Federal tax (cap-gain rate)
$0
NIIT 3.8%
$0
Total federal tax
$0
Vs. regular LTCG (20%)
$0
Per §1(h)(4), collectibles (defined in §408(m)) are capped at 28% for LTCG, NOT 20%. Short-term remains ordinary rate. The 3.8% NIIT applies on top per §1411.

Three planning angles we run for collectors

1. Charitable contribution of appreciated collectible, deduct FMV (with use-related limit) and skip the gain. 2. Estate step-up at death wipes basis if held. 3. §1031 is NOT available for collectibles after TCJA, only real property. We run all three scenarios on your collection.

Plan the sale with us

2024 collectibles LTCG cap 28% per §1(h)(4). Collectibles per §408(m)(2): any work of art, rug, antique, metal/gem, stamp/coin, alcoholic beverage, or other tangible personal property specified by Treasury. Includes physically-backed precious metals ETFs (Rev. Rul. 2008-5 line). NIIT 3.8% per §1411. Educational tool, not investment advice. Call 689-331-5723 or email info@zerofusstaxes.com.