By Sidney Kess and Edward Mendlowitz
November 2017 Issue
Many individuals have substantial investments in collectibles, such as art, stamps, coins, autographs, books, maps, baseball cards, glassware, antiques, gems, jewelry, or wine. The category is broad and does not distinguish between the motive to be a dealer, a hobbyist, or a serious investor—although the tax treatment is different for each. CPA financial planners can assist all such individuals, though the advice can vary.
Individuals with collectibles require advice from CPA financial planners. There are income and estate tax and charitable donation issues, as well as important and strict compliance rules. There is also the treatment of ongoing costs and gains or losses when disposed of. This area, as with any complicated tax issue, needs to be researched for the most recent rulings and cases when transactions are contemplated. Individuals should be made aware that the planner should be consulted prior to any transactions—afterward, in most cases, would be too late.
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