The short answer
Gold, silver, coins, art, and other collectibles are capital assets. If you sell one at a gain after holding it more than one year, the gain is collectibles gain, taxed at your regular rate but no more than 28%. It does not get the 0%, 15%, or 20% rates that apply to stocks. If you held it one year or less, the gain is short-term and taxed at ordinary rates.
What counts as a collectible
- Works of art, rugs, and antiques
- Metals, such as gold, silver, and platinum bullion
- Gems, stamps, and coins
- Alcoholic beverages, such as collectible wine
- Certain other tangible property
Jewelry is not listed separately, but the list includes gems and metals. Whether a piece of jewelry is a collectible held for investment or personal-use property matters for both the rate and whether a loss is deductible.
Short-term vs. long-term
| Held for | Type | How a gain is generally taxed |
|---|---|---|
| One year or less | Short-term | At ordinary income tax rates |
| More than one year | Long-term collectibles gain | At your regular rate, but no more than 28% |
The 28% figure is a maximum, not a flat rate. Publication 550 gives the example of someone whose net capital gain is all from collectibles: if they are otherwise subject to a rate lower than 28%, the 28% rate does not apply. The separate 3.8% net investment income tax can also apply at higher incomes.
Reporting: Form 8949, Schedule D, and the 28% worksheet
- Form 8949: report each sale in Part I (short-term) or Part II (long-term). Enter code C in column (f) and -0- in column (g). If you did not receive a Form 1099-B, use box C or box F.
- No Schedule D shortcut: the exception for reporting totals directly on Schedule D line 1a or 8a does not apply to collectibles.
- 28% Rate Gain Worksheet: if Schedule D line 17 is "Yes" and you have long-term collectibles gain or loss, complete the worksheet in the Schedule D instructions and enter the result on Schedule D, line 18.
- Funds: collectibles gain from a mutual fund is shown in Form 1099-DIV box 2d (or Form 2439 box 1d for undistributed gain) and goes on the worksheet too.
Personal-use losses
Property you hold for personal use — such as jewelry you wear or a collection you keep for enjoyment — is a capital asset. A gain on it is taxable, but a loss is not deductible. A loss on a collectible you held for investment can be a deductible capital loss, subject to the usual capital loss limits.
Gifted and inherited collectibles
- Gift: your basis is generally the donor's adjusted basis. If the item was worth less than the donor's basis at the time of the gift, your basis for figuring a loss is that lower value. When you use the donor's basis, your holding period includes the donor's.
- Inheritance: your basis is generally the fair market value on the date of death, and the gain or loss is treated as long-term however long you held it.
Examples (illustrative, 2025)
| Situation | Result |
|---|---|
| Mia bought gold coins in 2019 for $12,000 as an investment and sells them in 2025 for $20,000 | $8,000 long-term collectibles gain, taxed at her regular rate but no more than 28% |
| Jordan buys silver bars in March 2025 for $5,000 and sells them in November 2025 for $6,000 | $1,000 short-term gain, taxed at ordinary rates |
| Pat inherits a painting worth $50,000 at the date of death (the parent paid $10,000) and sells it in 2025 for $55,000 | Basis $50,000; $5,000 long-term collectibles gain |
| Lin sells a ring she wore for years for $1,500; she paid $3,000 | $1,500 loss on personal-use property, not deductible |
Common mistakes
- Applying the 15% stock rate to long-term collectibles gain.
- Assuming everything is taxed at 28%, even short-term gains or gains for people in lower brackets.
- Deducting a loss on personal-use jewelry or collections.
- Reporting totals directly on Schedule D instead of using Form 8949 with code C.
- Using the original purchase price for an inherited item instead of its value at the date of death.
Exchange-traded products and trusts that hold metals, collectibles bought through an IRA or retirement plan, dealers and collectors in business, and NFTs have their own rules. State tax treatment is also not covered.