FAQs: Collectible Item
1. How do I know whether a collectible item is “held for investment purposes”?
Household furnishings and paintings displayed for decorative or artistic purposes would not normally be considered collectible items held for investment. However, periodic sales from a collection of artwork would indicate that the collection is held for investment purposes.
If you are unsure whether a collectible item is held for investment purposes, consult your ethics official.
2. How do I value a collectible item?
You may use the purchase price, a recent appraisal for insurance purposes, a published price guide, the recent sale price of similar items, or a good faith estimate.