Passion for a collectible is one thing, investing in collectibles for gain is another. “Long-term, there may not be much return as they can be very illiquid and subject to liquidity issues,” Primeau said. “I’d imagine the market for selling collectibles right now might be very limited, given how much wealth has been lost as a result of the equity market pullback.”
“Using collectibles to ultimately fund a client’s philanthropic goals is something we explore,” Valouch said. “There are nuances involved in making a charitable donation of collectibles and the potential deduction.”
To get a charitable deduction equal to the fair market value on a collectible, according to Doyle, the taxpayer must hold the asset for more than a year and donate the item to a public charity that must put the asset to a use related to the charity’s tax-exempt function.