Are collectibles long-term capital gains?

The IRS considers most collectible items, except those sold by dealers, to be capital assets. As a result, any gain from the sale of a collector's item that you have held for more than one year is generally considered a long-term capital gain. Uncle Sam keeps taxes on 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.

This includes converting an IRA to gold, which is subject to the same tax rate as other collectibles. Long-term capital gain from the sale of a collector's item is taxed at 28 percent. The maximum long-term capital gains rate for cryptocurrencies is the same as that for securities, of 20%. Foreign exchange gains held for less than a year are considered short-term and are taxed according to income tax rates.