SELLING COLLECTIBLES? DON’T FORGET ABOUT THE CAPITAL GAINS TAX FTR TAX TIP OF THE MONTH
ENGLISH GROUND BEEF PASTIES
As I mentioned on Page 1, collecting sports cards surged in popularity in 2020 when people turned to the hobby for its investment potential. These cards can be real moneymakers. But if you’ve bought sports cards specifically to earn money on future sales, it’s important to take the collectibles capital gains tax rate into consideration. That rate can be up to 28%. Yes, you read that right! It’s a maximum much higher than the normal rates of 0%, 15%, and 20% for the sales of securities like stocks and bonds. According to the IRS, collectibles include works of art, rugs, antiques, metals (such as gold, silver, and platinum bullion), gems, stamps, coins, alcoholic beverages, and some other tangible properties, including sports cards. Something is considered a collectible if it carries additional value based on its rarity and market demand. Essentially, the value of your collection is determined by the opinions of collectors and experts who might buy it. The amount of collectibles capital gains tax you’ll have to pay is based on your income tax rate. For example, let’s say you’re married filing jointly and have $100,000 of taxable income after taking your deduction. In that scenario, you’re in the 22% income tax bracket. That means if you sell a collection of sports cards you’ve held for 20 years for $50,000 more than you paid for it, you’ll pay 22% on that gain. As I said above, the maximum long-term capital gains rate you can be asked to pay on a collectible sale is 28%, even if you’re in the top tax bracket. If you still have questions about the capital gains tax on collectibles, reach out to me and I’ll walk you through it. One last thing to keep in mind is that collectibles receive what is called “a step-up in basis” on the date of death of the holder. That means when you die, the fair market value for your collectible at the time of your death becomes the basis for its value. If you are holding on to a mint 1952 Topps Mickey Mantle baseball card like the one I referenced on Page 1, you might want to think about willing it to an heir. Then, they can sell the card using the stepped-up basis and may pay little to no tax on the sale, depending on when it is sold.
Inspired by AllRecipes.com
INGREDIENTS
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3/4 lb ground beef
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1 tsp dried parsley
1 medium onion, diced 2 medium potatoes, peeled and diced 2 sheets store-bought puff pastry dough
Salt and pepper, to taste
1/4 cup beef broth (as needed)
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DIRECTIONS
1. Preheat your oven to 400 F and line a baking sheet with parchment paper. 2. In a large bowl, combine the beef, onion, and potatoes. 3. Roll out the pastry dough into roughly 10-inch circles or squares. 4. Spoon 1/2 of the beef mixture onto each sheet of dough, then top the mixture with parsley, salt, and pepper. 5. Fold the edges of the dough over the filling, pinching each pasty shut and tucking in both ends. 6. Transfer the pasties to the prepared baking sheet, then cut several small slits in each pasty for ventilation. Bake for 45 minutes. 7. Remove the pasties from the oven and reduce the heat to 350 F. Spoon 1 tsp beef broth into each slit, then bake for an additional 15 minutes. 8. Serve and enjoy!
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