Can you write off collectables?

In addition, the IRS generally won't allow you to deduct any losses when you sell collectibles that you've saved for personal use. Determining the profit or loss of a sale requires first determining its general “basis”, its cost to acquire the collector item. If you sell a collectible in less than a year, it will be taxed as ordinary income. This could be advantageous if your income tax bracket is less than 28%.

To help you make an informed decision, consider using a Gold IRA comparison chart to compare the different types of gold investments available. However, the tax law prohibited deductible expenses and similar exchanges of collectibles. In general, artists, merchants, and investors can claim any expenses related to the creation, acquisition, conservation, or transportation of works of art if normal and ordinary commercial expenses are incurred, or if revenue production is incurred. While collectors can't claim these types of deductions, they do get tax benefits from selling or giving away their collections.