Tax Loopholes For Coin Collectors?

Not much room for thoughts ... If that's your tax lady, she is quoting the IRS rules, which is federal law.

The only other thought I have is that if you decide to take a risk and not follow her guidance, you are playing against the probability of an audit which is lower now than ever in our recent past. If your income is between $25,000 and $200,000 and you do not claim the EITC, your audit rate in recent years was only 0.17%. or 1 in 600.

I suppose if you are considering "flipping" some recent purchases, you can check whether your incremental rate is above or below the 28% for cap gains, and act accordingly.

Let's say the poster bought $1,000 of coins in September 2022, and can now sell them for $1,500, and knows their taxable income for 2023 is running at around $40,000.
If the coins are sold now, they are taxed as income at 12% (the incremental rate for someone with $40,000 in taxable income).
If they are sold after September, they are taxed at 28%.
Savings of $80 by selling now.

Income level does matter if selling within a year (above $182,100 it makes more sense to hold the coins, as they will be taxed at 32%).

After a year it doesn't matter according to the tax lady's advice.

Taxes... a good reason for me to stick to coins as a hobby. I leave my investing to funds that are easier to mange (or have managed).

But to each their own! Forewarned is forearmed.

No plans to flip or sell anything in my collection... ever... at least not while I am still above ground. My son says, "That is future me's problem."

There is no federal inheritance tax, but there is a federal estate tax. The federal estate tax generally applies to assets over $12.92 million in 2023, and the estate tax rate ranges from 18% to 40%.

I assure my heirs, they are well below that $12,920,000 threshold!

Inheritance is a whole other ballgame. Your heirs get to reset the "basis" (value) to the day you died. Then they only have to pay capital gains on the difference between that and their selling price. In my very limited experience it's a huge benefit when inheriting real estate. With coins you'd have to determine their value on that specific date, which seems difficult. There's a thread on here I think on that very subject but I'm too lazy to look for it.

Yes, if you buy and sell within a year it gets taxed at your normal rate for your income bracket. I think the same applies for most other assets.

Great article by Jeffrey J Pritchard in the "CPG COIN & CURRENCY REVIEW "
Vol VI #3 . July 2023 . This is a publication from GREYSHEET.
The article is titled " Are you a Collector , Investor , or Dealer ?"
The IRS wants to know!
Certainly a great read for my American Cousins as it pertains to taxation
and Coins according to the IRS .
See if you can find a copy or get one from GREYSHEET.
Our rules in Canada our much different .