The Taxman Cometh

It really looks like if you’re an American collector, and you are not out to hide anything, the IRS will eventually grab a good piece of your action…

If you collect, the IRS will collect from you

The State | 03/16/2008
By ARDEN DALE – The Wall Street Journal

“Oil paintings, old cars or Elvis’ guns: Whatever you collect is a tax bill waiting to happen. Capital gains, estate and gift taxes may all come into play depending on whether you decide to sell off parts of the collection or bequeath it to an heir.

Collector, investor or dealer? Experts advise that you start by deciding your tax status: collector, investor or dealer. Tax rules recognize these three categories, and deductions are handled differently for each under the Internal Revenue Code.

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