Investing in collectibles legally avoids paying capital gains taxes.

Question

Quizplus · Accepted Answer

This statement is false. Collectibles are subject to capital gains taxes when sold. The tax rate can be higher for collectibles (up to 28%) compared to other investments (up to 20%). However, there are some tax strategies that investors can use to minimize the taxes on their collectibles, such as donating them to a museum or using them to offset gains from other investments. It is important to consult with a tax professional for specific guidance on how to handle capital gains taxes related to collectibles.

Investing in Collectibles Legally Avoids Paying Capital Gains Taxes