Discussion:Is a book a collectible?

IRC Section 408 defines a collectible as "any work of art, any rug or antique, any metal or gem, any stamp or coin, any alcoholic beverage, or any other tangible personal property specified by the Secretary for purposes of this subsection." Is a book one of the items included in "any other tangible personal property"?

Section 1 refers to §408 (w/o regard to §408(m)(3)) for the definition of "collectible" for 28% capital gain treatment. §408(m)(2)(F) has the final catch-all definition of a collectibe to include (as you note), "any other tangible personal property specified by the Secretary for purposes of this subsection." Emphasis added.

I find collectible and "rare book" used in conjunction frequently for charitable contribution purposes (§170); however, although I have not exhausted all avenues of research, I find no examples of collectible and "rare book" used in conjunction for §408 purposes.

In other words, since §1 refers to §408(m) for the definition of collectible, and since the §408(m) definition allows the Secretary to specify other tangible personal property "for purposes of this subsection" (i.e., §408(m)), then the Service presumably cannot look to other sections of the Code for a definition.

This does not mean the IRS would not take the position that a rare book is not a collectible, and, in fact, I would surmise that they would say it is a collectible since there is a thriving market in rare books. That is, my gut feeling is to agree with Taxref.

However, if my limited research is correct, then the plain language of the law rules. Congress gave the Secretary the authority to specify other tangible property not already specifically listed by Congress. That the Secretary has not done so is the IRS's problem, not a taxpayers.