Claim collectible appreciation?
Do you have to claim taxes on income from selling something that you already owned?
ANSWER: Yes. Any money you make is income that you have to pay taxes on. You already paid taxes when you purchased the item, but now you will have to pay taxes on the gain – that’s the difference between what you originally paid for it and what you sold it for.
For example, if I buy a painting for $1,000 and over the years it goes up in value to $10,000, then the gain is $9,000. I have to pay taxes on $9,000.
You just need to make sure you’ve held these items long enough for them to be considered capital gain. Contact your tax advisor to find out how to claim the taxable income.