What is the tax rate applicable on gains from collectibles like stamp collections?

The tax rate applicable to gains from collectibles, such as stamp collections, is 28%. This specific rate is established because collectibles are treated differently than other types of capital assets. When you sell collectibles for a profit, the gains are taxed at this higher rate rather than the standard long-term capital gains rates, which can be 15% or 20% depending on your income level.

The classification of collectibles includes not just stamps but also coins, antiques, and art, among other items. This differentiation in tax treatment reflects the government's intent to regulate the transactions of collectible items more strictly, often due to their volatile market values and perceived investment nature.

Other potential tax rates, such as 15% or 20%, apply to general long-term capital gains for assets that do not fall into the collectibles category. Such assets typically include stocks or bonds, which are taxed at lower rates. The 25% rate also typically does not apply to collectibles, as it is related to certain types of capital gains from depreciated property, which again is distinct from collectible items. Thus, the 28% rate specifically tailored for collectibles is the correct answer in this context.