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<p>[QUOTE=&quot;bmike, post: 284529, member: 9881&quot;]Treashunt:</p><p>&nbsp;</p><p>There are 3 ways to report a sale of a collectible:</p><p>&nbsp;</p><p>1. If you in the trade or business of selling collectibles (a dealer), it is reported on Schedule C (if unincorporated) and the net gain is taxable at ordinary rates PLUS self-employment taxes (OUCH!). Any loss is deductible against ordinary income.</p><p>&nbsp;</p><p>2. If collectibles are a hobby for you, all income is reportable as ordinary income. Expenses are deductible as an itemized deduction but only up to the amount of the hobby income.</p><p>&nbsp;</p><p>3. Finally, if the collectible is an investment, the sale is a capital gain or loss. Unfortunately, collectibles are taxed at a 28% rate as discussed in my previous post. (IRS Code Sec. 1(h)(5). They are not eligible for the reduced rate of 15% as are other investments (stocks, bonds, etc.)[/QUOTE]</p><p><br /></p>

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