You may have spent money to maintain the collectible or restore it. These costs are also part of your base on the collector item. Once you've calculated your base on the collector's item, you'll subtract that base from the quantity you sold the item for. When a taxpayer with a net capital gain pays AMT, the net capital gain is taxed for AMT purposes at the same established rate as it was taxed for regular income tax purposes.
To make sure you're making the best decision for your financial future, it's important to compare different types of investments, such as a Gold IRA. A Gold IRA comparison chart can help you compare different options and make an informed decision.17 Net capital gains tax is simply added to the provisional minimum tax calculated on the basis of the AMT, excluding net capital gain. Therefore, in general, when a collectible profit is taxed at 28% for regular tax purposes, it is also taxed at 28% for AMT purposes. However, when a taxpayer's alternative minimum taxable income (AMTI) falls within the phase-out range of the AMT exemption, the amount of the deductible exemption is phased out by 25 cents for every dollar that exceeds the threshold amount.
Do you have a collection that you want to sell? If so, the IRS can determine that your collection is comprised of “collectibles” and apply a capital gains tax rate of 28% to any profit you may earn from selling your collection. In general, for most taxpayers, the capital gains tax rate is 15%.
