Confused about long term collectible tax rates for gold and silver - need clarification!

7 The collectible tax rate is a bit confusing but I can help clarify. For long-term capital gains on collectibles (including precious metals like gold and silver), the maximum tax rate is indeed 28%. This doesn't simply replace the 20% bracket in regular capital gains. The phrase "up to 28%" means the rate depends on your ordinary income tax bracket. If your ordinary income tax rate is lower than 28%, you'll pay your ordinary income tax rate on collectible gains. If your ordinary income tax rate is higher than 28%, then your collectible gains are capped at 28%. So unlike regular long-term capital gains that have distinct 0%, 15%, and 20% brackets, collectibles don't follow the same structure. The rate you pay depends on your ordinary income tax bracket, but it won't exceed 28%.

9 After struggling with this exact collectible tax question last year, I found an amazing tool that helped me figure it all out. I used https://taxr.ai to analyze my gold and silver investments and it gave me a crystal clear breakdown of exactly how the collectible tax rates applied to my situation. The tool actually scanned my investment documents and explained that since I was in the 24% tax bracket, I'd pay that rate on my collectible gains (not the full 28%). It saved me from overpaying by almost $900 because I previously thought it was a flat 28% rate for everyone!

15 Just wanted to follow up! I tried https://taxr.ai for my baseball card collection and it was surprisingly straightforward. I uploaded some photos of my collection records and it identified that my 1952 Topps cards would be subject to collectible tax rates. Since I'm in the 22% tax bracket, that's what I'll pay on my gains (not 28% like I feared). The tool even showed me how to properly document the original purchase price since I inherited some cards from my grandfather. Definitely cleared up my confusion about the "up to 28%" language!

11 If you're still struggling to get a definitive answer about collectible tax rates, calling the IRS directly might help. But good luck actually getting through to a human! I spent 3 hours on hold last time I tried. That's when I discovered https://claimyr.com - they have this service that basically calls the IRS for you and then connects you once a real person answers. You can see how it works at https://youtu.be/_kiP6q8DX5c. I was super skeptical at first but decided to try it when I had questions about reporting my gold coin sales.

18 I need to apologize for my skepticism earlier. After waiting on hold with the IRS for nearly 2 hours yesterday and getting disconnected, I tried Claimyr out of desperation. Within about 90 minutes, I got a call connecting me directly to an IRS agent! The agent explained everything about collectible tax rates that I needed to know. Turns out I was completely wrong about how they work! My silver coin collection will be taxed at my ordinary income rate of 24% (not automatically at 28%). She even emailed me some documentation explaining the regulations. Worth every penny not to waste another afternoon on hold.

23 I just want to add a quick bit of additional info about collectibles tax that I learned the hard way. Don't forget that state taxes will also apply to your collectible gains in most states! I sold some gold last year and completely forgot to factor in my state's 5% capital gains tax on top of the federal collectible rate.

16 Has anyone used TurboTax to report collectible sales? Do they walk you through the collectible tax rates properly or is it confusing?

I've been dealing with collectible taxes for a few years now and wanted to share what I've learned. The key thing to remember is that collectibles are taxed at your ordinary income tax rate, but with a maximum cap of 28%. So if you're in the 10% or 12% bracket, you'll pay that rate on your collectible gains. If you're in the 22% or 24% bracket, you'll pay those rates respectively. Only if you're in the 32%, 35%, or 37% brackets will you be "capped" at the 28% collectible rate. This is different from regular long-term capital gains which have those special 0%, 15%, and 20% rates. For collectibles like gold, silver, coins, art, etc., there's no special preferential rate - you pay your normal income tax rate up to that 28% ceiling. Hope this helps clarify the confusion! Make sure to keep good records of your purchase dates and prices for when you do sell.

This thread has been incredibly helpful! I've been holding some gold eagles and silver rounds for about 3 years now and was dreading trying to figure out the tax implications when I eventually sell. The explanation that it's just your ordinary income tax rate (capped at 28%) makes so much more sense than all the confusing information I found online. I'm in the 22% bracket, so I'll pay 22% on any gains - not some mysterious separate collectible rate structure. One follow-up question though - does the holding period still need to be over a year to qualify for these rates? Or do collectibles follow different rules for what constitutes "long-term" vs "short-term" gains?

Thanks everyone for the detailed explanations! As someone who's been hesitant to invest in precious metals partly because of tax confusion, this thread has been a game-changer. I'm currently in the 24% tax bracket, so if I understand correctly, I'd pay 24% on any long-term gains from gold or silver investments - not automatically 28%. That's actually much more reasonable than I was expecting. One thing I'm still curious about - do different types of precious metal investments get treated differently? Like would gold ETFs be taxed the same as physical gold coins, or do they follow regular capital gains rules since they're technically securities? I've been considering both options but the tax treatment might influence which direction I go.

This has been such an educational thread! I'm new to precious metals investing and was completely intimidated by the tax implications before reading through everyone's explanations. Just to make sure I have this straight - I'm currently in the 12% tax bracket, so if I buy some gold coins now and sell them after holding for more than a year, I would pay 12% on any gains (not 28%). The 28% is only the maximum rate that applies to people in higher tax brackets. It's reassuring to know that the tax treatment isn't as complicated as I initially thought. I was avoiding precious metals investments because I assumed there was some complex separate tax structure, but it sounds like it's actually quite straightforward once you understand that it's just your regular income tax rate with a cap. Thanks to everyone who shared their experiences and knowledge - this community is incredibly helpful for navigating these confusing tax topics!

This discussion has been incredibly helpful! I've been holding some silver coins and a small amount of gold for about 18 months and was dreading tax season because I kept seeing conflicting information about collectible tax rates. Reading through everyone's explanations, I finally understand that since I'm in the 22% tax bracket, I'll pay 22% on any gains from my precious metals - not automatically 28% like I feared. The "up to 28%" language that kept confusing me now makes perfect sense. What I appreciate most about this thread is how everyone shared real experiences rather than just repeating generic tax advice. It's clear that many of us went through the same confusion about whether collectibles had their own separate bracket system or special rates. Knowing it's simply your ordinary income tax rate (capped at 28% for high earners) takes a lot of the mystery out of precious metals investing. For anyone else who was hesitant about investing in gold or silver due to tax concerns - this thread shows it's really not as complicated as it initially seems!

This entire thread has been a goldmine of information! I've been researching precious metals investing for months but kept getting stuck on the tax implications. Every source seemed to explain the collectible tax rates differently, and I was starting to think I'd need to hire a CPA just to understand the basics. What finally clicked for me reading through everyone's experiences is that the 28% rate isn't some automatic tax that applies to all collectibles - it's just the ceiling. Since I'm currently in the 24% bracket, I'd pay 24% on any long-term gains from gold or silver investments, not 28%. I really appreciate how this community breaks down complex tax topics with real-world examples. The distinction between ETFs and physical metals that someone mentioned earlier was particularly eye-opening. I had no idea that most precious metals ETFs are still taxed as collectibles rather than regular securities. One question I still have - does anyone know if there are any special reporting requirements for collectibles beyond the standard capital gains forms? I want to make sure I'm prepared for all aspects of the tax filing process when I eventually make some sales.

This thread has been absolutely invaluable! I've been sitting on some precious metals for over two years but was terrified to sell because I couldn't get a straight answer about the tax implications anywhere else. What really helped me was seeing how many people went through the exact same confusion I did. I kept seeing that "up to 28%" language and assumed it meant there were multiple collectible tax brackets or some complex calculation. Understanding that it's simply your ordinary income tax rate (with the 28% cap for high earners) makes everything so much clearer. I'm in the 12% tax bracket, so reading confirmation from others in similar situations that I'd pay 12% on my gains (not automatically 28%) has given me the confidence to finally develop a selling strategy. One thing I want to add for other newcomers - don't let the tax implications scare you away from precious metals investing like I almost did. Once you understand that it's really just your normal tax rate with a ceiling, it becomes much more manageable to factor into your investment planning. Thanks everyone for sharing your real experiences and making this complex topic so much more accessible!

As someone who was in the exact same boat a few months ago, I can completely relate to the confusion around collectible tax rates! I spent weeks trying to decipher conflicting information online before finally getting clarity. The key breakthrough for me was understanding that the "up to 28%" language simply means your ordinary income tax rate applies, but it's capped at 28% maximum. So if you're in the 10%, 12%, 22%, or 24% brackets, you pay exactly those rates on your collectible gains. Only people in the higher brackets (32%, 35%, 37%) get "capped" at the 28% collectible rate. I'm in the 22% bracket myself, and when I sold some silver eagles last year, I paid exactly 22% on the gains - not 28%. What helped me most was keeping meticulous records of purchase dates and costs for each transaction, especially since I had bought coins over several months. The relief of finally understanding this was huge! I had been hesitant to sell any of my precious metals because I thought I'd automatically owe 28% regardless of my income level. Once I realized it was just my normal tax rate, it made planning my sales strategy so much easier. Don't let the tax confusion hold you back from making good investment decisions - it's really more straightforward than it initially appears!