Help!! Audited on my 2021 Taxes over baseball cards!!

[raulus]

Originally Posted by ValKehl

yes, the taxes I have paid (22% federal and 5.75% Virginia) on these collectibles gains are painful.

Unless you’re a dealer, the federal tax rate on collectibles gains is 28%. Plus a bonus 3.8% net investment income tax for taxpayers whose adjusted gross income exceeds certain thresholds. Plus state and local rates where applicable.

For dealers, they pay tax at their ordinary income tax rate, which for fed can be as high as 37%.

For those of us who meet the NIIT thresholds, and live in states and cities with high rates, we often end up paying 40%-45% or more on our gains.