1/1/2011: Coins & other collectibles will again be on a near long term capital gains tax parity
oreville
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After December 31, 2010, long term capital gains will once again rise from a maximum of 0-15% to a maximum of 20%.
Coins and other collectibles have previously been excluded from the most favorable maximum long term capital tax rate of 15% since the early part of this decade. Coins and collectibles instead had a maximum tax rate of 28% and will not change after 2010.
I believe this is partially behind the growing premiums of slabbed large US gold coins over even their corresponding bullion values as buyers know that this change is coming.
Of course there are other and stronger factors but this factor cannot be ignored as a significant sea change in the hobby 14 months from now.
The much higher maximum long term capital gains rate for coins has been principally behind the lagging performance of the coin hobby versus other investments since the early part of this decade. That may very well change after January 2011, if it hasn't already changed. There will be much selling of other assets but not much selling of coins in the next 14 months.
This smacks of discussing coins as if it were strictly an investment. However, I am very much aware that coins is only partially seen as an investment but the investment aspect of coins will take on a more prominent role in the years to come which may in fact, be as much a signal to sell as well as to buy.
Edited as poorly worded before.
Coins and other collectibles have previously been excluded from the most favorable maximum long term capital tax rate of 15% since the early part of this decade. Coins and collectibles instead had a maximum tax rate of 28% and will not change after 2010.
I believe this is partially behind the growing premiums of slabbed large US gold coins over even their corresponding bullion values as buyers know that this change is coming.
Of course there are other and stronger factors but this factor cannot be ignored as a significant sea change in the hobby 14 months from now.
The much higher maximum long term capital gains rate for coins has been principally behind the lagging performance of the coin hobby versus other investments since the early part of this decade. That may very well change after January 2011, if it hasn't already changed. There will be much selling of other assets but not much selling of coins in the next 14 months.
This smacks of discussing coins as if it were strictly an investment. However, I am very much aware that coins is only partially seen as an investment but the investment aspect of coins will take on a more prominent role in the years to come which may in fact, be as much a signal to sell as well as to buy.
Edited as poorly worded before.
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[edit] But I doubt those assets will be moved into coins. I have other plans.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
<< <i>After December 31, 2010, long term capital gains will once again rise to at least 20%, if not 28%.
Coins and other collectibles have been excluded from the most favorable maximum long term capital tax rate of 15% since the early part of this decade. Coins and collectibles instead had a maximum tax rate of 28% and will not change after 2010.
I believe this is partially behind the growing premiums of slabbed large US gold coins over even their corresponding bullion values as buyers know that this change is coming.
Of course there are other and stronger factors but this factor cannot be ignored as a significant sea change in the hobby 14 months from now.
The higher maximum long term capital gains rate for coins has been principally behind the lagging performance of the coin hobby versus other investments since the early part of this decade. That may very well change after January 2011, if it hasn't already changed. There will be much selling of other assets but not much selling of coins in the next 14 months.
This smacks of discussing coins as if it were strictly an investment. However, I am very much aware that coins is only partially seen as an investment but the investment aspect of coins will take on a more prominent role in the years to come which may in fact, be as much a signal to sell as well as to buy. >>
Can you provide the Legislation ?
So why wouldn't they then also raise the collectibles/bullion area to say 35% or 38% to keep the status quo? Considering that most stock holders/brokers would love to see coin and bullion holders punished what would stop such a scenario esp. since there is already precedent to maintain a differentia? Everyone knows that gold bugs are the source of all current economic ills.
roadrunner
My interpretation is that existing laws are due to expire, and thus the rates will increase.
It's a sensitive subject for many folks. I will limit my contribution to just posting the link. And this comment.