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Category: Questions about Income

What is a "Collectible Exchange"?

If you had capital gains or losses that you need to report on your return, there is certain information about the sale that you must know that will affect how your transaction gets treated: the purchase and sale dates, the cost to you for the item(s) sold, the sales price for the item(s) sold, and whether or not it was a "collectible exchange".

What is a "Collectible Exchange"?

A collectible exchange is any long-term gain or deductible long-term loss from the sale or exchange of a collectible that is a capital asset. If all you sold was stock, your capital gain or loss was not a collectible exchange.

Collectibles include: works of art, rugs, antiques, metals (such as gold, silver, and platinum bullion), gems, stamps, coins, alcoholic beverages, and certain other tangible property.

Long-term sales and losses generally are those that occur when you sell property that was held more than 1 year. To figure the holding period, begin counting on the day after you received the property and include the day you disposed of it.

If you disposed of property that you acquired by inheritance, this is considered a long-term gain or loss, regardless of how long you held the property.