Did you know that collectibles, and even country-club memberships qualify for long-term capital-gains rates? Here's a guide.
IF YOU'RE A stock and mutual-fund investor, then you probably know that investments held for more than a year are subject to lower tax rates as long-term capital gains. Generally speaking, if you're in the 28% tax bracket or higher, you will owe no more than 20% of your profits to the Internal Revenue Service.
But what you might not realize is that much more than just stock and mutual-fund shares are eligible for favorable capital-gains tax treatment. So if you sold, say, your vacation time share or your country-club membership, then you just might be pleasantly surprised to discover you'll owe just 20% on the gain (assuming, as always, that you held the asset for more than a year).
Here's a list of the different types of assets subject to these lower rates (possibly minus a few extremely remote items). Unless otherwise specified, the 20% maximum rate applies to profitable sales of these items: