Capital Gains tax on Comic Sales question

[Fedoraman]

All politics aside, if the laws get changed and you are not taxed on capital gains below $200,000.00 per year - how does this apply to dealers who buy a comic for say $50 then sell it for $100? If they only earn $199,000.00 from these types of deals in a year do they have to claim it as income?

 

Is this type of transaction considered a capital gain or does this only apply to certain types of investments?

[october]

Good question.

 

I declare all of my comic income under short term capital gains (which assesses at my regular tax rate), but only for those books I have held for a year or less (which has basically been everything so far). Collectibles held long term are taxed at a flat 28% under their own category.

 

If short term capital gains ever become tax exempt it will certainly encourage quick flips.

[Thawk]

I believe comics are not considered capital assets in terms of tax code - there are under the umbrella of "collectibles" which are taxed much higher than traditional capital asset gains. I believe the rate is 28% for all income brackets (there may be an exception for the lowest bracket making it 15% - not sure if that's still true - was years ago) All this depends on you holding the item for more than a year (otherwise it's taxed as regular income).

[Ivan_Only-migration]

...how does this apply to dealers who buy a comic for say $50 then sell it for $100?...

 

Would it depend if the "Dealer" had a business license or not?

[Transplant]

Apparently it's time for the board's semi-annual tax advice thread bonanza.

[greggy]

[Ditch Fahrenheit]

Apparently it's time for the board's semi-annual tax advice thread bonanza.

[Transplant]

Offer some Canadian tax advice. It'll be more accurate and helpful than what I've seen posted in past threads.

[greggy]

Offer some Canadian tax advice. It'll be more accurate and helpful than what I've seen posted in past threads.

[namisgr]

I believe comics are not considered capital assets in terms of tax code - there are under the umbrella of "collectibles" which are taxed much higher than traditional capital asset gains. I believe the rate is 28% for all income brackets (there may be an exception for the lowest bracket making it 15% - not sure if that's still true - was years ago) All this depends on you holding the item for more than a year (otherwise it's taxed as regular income).

 

+1

 

Gains on comic sales aren't treated as capital gains. They're collectibles gains.