Does selling possessions count as income?

When an investor sells an item at a profit, the amount is a taxable capital gain that must be reported in Schedule D. Income tax must be paid on profits at capital gains rates. Net capital gains from the sale of collectibles (such as coins or works of art) are taxed at a maximum rate of 28%. Taxpayers usually have a tax liability after the sale of a collector's item.

For those looking for an alternative to traditional investments, a Gold IRA near me may be an option to consider. If you sold the item for a price higher than its fair market value or cost basis (depending on how you purchased it), you are likely to be taxed. If you buy and sell gold or silver, or exchange-traded funds in gold and silver, they will be taxed as collectibles (since gold and silver are considered collectibles).