The Capital Gains and Tax Guide for Selling a 1962 Roosevelt Silver Dime (Full Bands Potential)

Selling high-value collectibles comes with specific tax rules that most hobbyists ignore until it’s too late. Here’s a breakdown of the financial implications.

As a CPA who has spent the better part of two decades working with numismatists, coin dealers, and estate liquidators, I can tell you that the single most common mistake I see collectors make is failing to understand the tax consequences of selling their coins before they list them for sale. The forum discussion around this 1962 Roosevelt Silver Dime — a coin that may or may not achieve Full Bands designation — is a perfect case study in why every collector needs to think like a tax professional, not just a hobbyist, when it comes time to sell.

Let me walk you through the key tax considerations that apply to this exact scenario and, by extension, to virtually every collectible coin transaction you’ll encounter.

Understanding Capital Gains Tax on Collectibles

The first thing every collector needs to understand is that coins are classified by the IRS as collectibles, not as standard investment assets like stocks or bonds. This distinction matters enormously because it directly affects the tax rate you’ll pay when you sell.

Here’s the critical breakdown:

• Long-term capital gains on collectibles are taxed at a maximum federal rate of 28%, which is significantly higher than the 15% or 20% long-term capital gains rate that applies to most other investments.
• Short-term capital gains (if you held the coin for one year or less) are taxed at your ordinary income tax rate, which could be as high as 37% depending on your tax bracket.
• These rates apply regardless of whether you’re a casual collector or a full-time dealer — though your status (which we’ll discuss below) changes how the gains are reported.

Let’s apply this to the 1962 Roosevelt Dime in question. Forum members have noted that an MS66FB example is currently listed on eBay for around $20 — barely enough to cover grading fees — while an MS67FB has sold for $275 or more. If you purchased this dime years ago for, say, $5 at a coin show and it grades MS67FB, you’d be looking at a $270 gain. At the 28% collectibles capital gains rate, that’s roughly $75.60 in federal taxes on that single coin, not counting any state taxes that may apply.

Now, that’s a simplified example, but it illustrates why understanding your tax liability before you sell is essential. You don’t want to pocket $270 only to discover at tax time that nearly a third of it belongs to the IRS.

The 1099-K Reporting Threshold: What Changed and Why It Matters

If you’ve been selling coins online — particularly through platforms like eBay — you need to be aware of the evolving 1099-K reporting rules. These rules determine when a payment platform is required to report your sales to the IRS.

Here’s what you need to know:

• The 1099-K threshold was temporarily set to $600 in total gross payments (regardless of the number of transactions) under the American Rescue Plan Act of 2021.
• The IRS delayed implementation of this lower threshold, and for tax years 2023 and 2024, the threshold remained at the prior level of $20,000 and 200 transactions.
• However, the IRS has signaled that the $600 threshold will eventually take effect, and many states have already adopted lower thresholds independently.

What this means for you practically: Even if you don’t receive a 1099-K, you are still legally required to report all income from the sale of collectibles. The absence of a 1099-K does not mean the sale is invisible to the IRS. Payment platforms are increasingly sharing data with tax authorities, and the IRS has made it clear that it is focusing enforcement efforts on the “tax gap” — the difference between taxes owed and taxes paid.

For the 1962 dime scenario, if you’re selling a coin for $275 on eBay, that transaction alone won’t trigger a 1099-K under current thresholds. But if you’re an active seller who moves dozens of coins throughout the year, your cumulative sales could easily cross the reporting threshold, and you’ll want to be prepared.

Cost Basis Tracking: The Most Overlooked Tax Strategy in Numismatics

In my experience, the area where collectors leave the most money on the table — or, conversely, expose themselves to the most risk — is cost basis tracking. Your cost basis is what you paid for the coin, and it’s the number that determines how much gain (or loss) you realize when you sell.

Here’s the problem: most collectors have terrible records. They bought a handful of dimes at a coin show in 1998, or they inherited a collection from a relative, or they traded coins with a friend. In none of these scenarios is there a clean paper trail.

Let me outline the key rules and strategies:

Determining Your Cost Basis

1. Purchased coins: Your cost basis is the purchase price plus any associated costs (shipping, auction fees, grading fees). If you paid $5 for that 1962 dime and $3 in shipping, your cost basis is $8.
2. Inherited coins: Your cost basis is the fair market value (FMV) of the coin at the date of the original owner’s death. This is known as a “stepped-up basis” and can be enormously beneficial. If your grandfather bought the dime for $1 in 1962 and it was worth $200 at the time of his passing, your cost basis is $200 — not $1.
3. Gifted coins: Your cost basis is generally the same as the giver’s original cost basis (a “carryover basis”). This is less favorable than an inherited basis, which is one reason estate planning matters for serious collectors.
4. Coins with unknown basis: If you genuinely cannot determine what you paid, the IRS may allow you to use a cost basis of $0, which means the entire sale price is taxable gain. This is the worst-case scenario.

Record-Keeping Best Practices

I recommend that every collector maintain a simple spreadsheet or use dedicated numismatic inventory software that tracks:

• Date of acquisition
• Purchase price (including all fees)
• Source (dealer, auction, inheritance, trade)
• Date of sale
• Sale price (net of fees)
• Grading certification number (if applicable)

For the 1962 Roosevelt Dime specifically, if you’re considering a PCGS submission at $23 (as the forum poster mentioned), that grading fee is not added to your cost basis for the coin itself. However, if the coin is being graded for the purpose of sale, the fee may be deductible as a selling expense, which reduces your taxable gain. This is a nuance that many collectors miss.

Dealer vs. Collector Status: A Critical Distinction

One of the most consequential — and most misunderstood — distinctions in collectibles taxation is whether the IRS considers you a collector or a dealer. The tax treatment differs significantly between the two.

How the IRS Defines Each Status

Collector: You buy and sell coins primarily for personal enjoyment, investment, or hobby purposes. Your sales are infrequent, and you don’t hold yourself out as a coin dealer. Gains from sales are treated as capital gains (subject to the 28% collectibles rate for long-term holdings), and losses are treated as capital losses, which can only offset capital gains plus $3,000 of ordinary income per year.

Dealer: You are engaged in the trade or business of buying and selling coins. You hold inventory with the primary purpose of selling to customers. Your gains are treated as ordinary income (taxed at your regular income tax rate), and your losses are ordinary losses, which can offset other ordinary income without the $3,000 cap. However, dealers are also subject to self-employment tax (an additional 15.3% on net earnings), which collectors are not.

Why This Matters for the 1962 Dime Seller

If you’re a casual collector who happens to sell a 1962 Roosevelt Dime that you’ve held for years, you’re almost certainly a collector in the eyes of the IRS. Your gain is a capital gain, taxed at 28% if long-term.

But if you’re regularly buying and selling dimes — particularly if you’re buying raw coins, submitting them for grading, and flipping them for profit — the IRS may view you as a dealer. This changes everything:

• Your gains become ordinary income, potentially taxed at a higher rate than 28% if you’re in a high tax bracket.
• You owe self-employment tax on your net profits.
• You can deduct business expenses (grading fees, travel to coin shows, reference books, photography equipment) against your income.
• You may be required to make quarterly estimated tax payments.

The forum discussion about whether to submit the 1962 dime for grading touches on this indirectly. The poster is weighing a $23 grading fee against the potential upside of achieving MS67FB status (which could mean a $250+ sale versus a $20 sale for MS66FB). If this is a one-off decision by a long-term collector, it’s a straightforward capital gains calculation. But if the poster is systematically buying raw dimes, grading them, and selling them, the IRS could argue this is a trade or business.

When Grading Fees Become a Tax Deduction

This is a topic that comes up constantly in my practice, and it’s directly relevant to the forum discussion about whether to spend $23 to grade the 1962 dime.

Here’s the general rule:

• If you’re a collector: Grading fees are generally not deductible as a separate expense. However, they can be added to the coin’s cost basis if the grading is done in connection with the acquisition or preservation of the coin. In practice, this means the grading fee reduces your capital gain when you sell.
• If you’re a dealer: Grading fees are a fully deductible business expense in the year they’re incurred. You can deduct them on Schedule C against your coin-dealing income.
• If you’re selling an estate: Grading fees incurred to establish value for estate purposes may be deductible on the estate’s income tax return (Form 1041).

For the forum poster considering a $23 PCGS submission: if the coin grades MS67FB and sells for $275, and your original cost basis was $5, your total gain would be $270 ($275 – $5). If you can add the $23 grading fee to your basis, your gain drops to $247 ($275 – $28). At 28%, that saves you about $6.44 in federal taxes — not a fortune, but it adds up across multiple coins.

Reporting the Sale: Practical Steps

When tax time comes, here’s how you report the sale of a collectible coin:

1. Form 8949: Report the sale of the coin on Form 8949 (Sales and Other Dispositions of Capital Assets). You’ll list the date acquired, date sold, cost basis, and sale proceeds.
2. Schedule D: The totals from Form 8949 flow to Schedule D, where your collectible gain is calculated at the 28% rate.
3. Schedule C (if a dealer): If you’re classified as a dealer, report your income and expenses on Schedule C instead, and pay self-employment tax on Schedule SE.
4. State returns: Don’t forget that most states also tax capital gains, and some states have their own rules for collectibles. Check your state’s specific requirements.

If you sold the coin through eBay or another platform and received a 1099-K, the gross sale amount will be reported to the IRS. Make sure your reported cost basis accounts for the full amount — don’t just report the net amount after eBay fees, because the 1099-K will show the gross.

Actionable Takeaways for Collectors and Sellers

Before you list that 1962 Roosevelt Dime — or any collectible coin — for sale, here’s my checklist:

1. Determine your cost basis. Dig up receipts, auction records, or estate documentation. If you inherited the coin, get a professional appraisal to establish the stepped-up basis.
2. Calculate your potential tax liability. Know what you’ll owe before you sell, so you can price the coin accordingly and avoid surprises.
3. Decide on grading strategically. As the forum discussion illustrates, the difference between MS66FB ($20) and MS67FB ($275+) is enormous. But factor in grading fees, shipping, insurance, and the time value of money. A $23 grading fee on a coin that might only grade MS66FB is a poor investment.
4. Understand your status. Are you a collector or a dealer? If you’re unsure, consult a tax professional. The answer affects everything from your tax rate to your deductible expenses.
5. Keep meticulous records. Every purchase, every sale, every grading fee, every auction commission. The IRS doesn’t accept “I don’t remember” as a defense.
6. Consider timing. If you have capital losses from other investments, selling a collectible in the same year can allow you to offset gains with losses, reducing your overall tax bill.

Conclusion: The 1962 Roosevelt Dime as a Microcosm of Collectible Taxation

The 1962 Roosevelt Silver Dime — particularly one with potential Full Bands designation — is more than just a coin. It’s a window into the broader world of collectible taxation. The forum discussion about whether to grade it, what it might be worth, and whether the investment in professional grading makes sense is, at its core, a discussion about risk, reward, and the often-overlooked tax implications that sit beneath every transaction.

The 1962 dime itself is a fascinating piece of American numismatic history. Struck at the Philadelphia Mint (no mint mark) during the final decade of Roosevelt dime production before the transition to clad coinage in 1965, it represents the tail end of an era. The Full Bands designation — which requires complete horizontal band separation on the torch on the reverse — is a marker of strike quality that separates truly exceptional examples from the masses of well-circulated dimes from this period. In MS67FB, this coin commands a significant premium precisely because so few examples survive in that condition with full band detail.

But as this guide has shown, the numismatic value of a coin is only part of the equation. The tax implications of selling — from capital gains rates to cost basis tracking to the dealer-collector distinction — can meaningfully affect your bottom line. Whether you’re selling a single 1962 dime or liquidating a lifetime collection, understanding these rules isn’t optional. It’s essential.

As I always tell my clients: the best time to think about taxes is before the sale, not after. Do your homework, keep your records, and when in doubt, consult a CPA who understands the unique intersection of numismatics and tax law. Your future self — and your wallet — will thank you.

Related Resources

You might also find these related articles helpful:

• How to Properly Store and Preserve Your Numismatic Treasures: A Conservationist’s Guide to Toning, Oxidation, PVC Damage, and the Golden Rule of Never Cleaning – I’ve watched too many valuable pieces get ruined by well-meaning but misguided cleaning attempts and careless stor…
• Grading the Coins That Started It All: A Professional Grader’s Breakdown of Wear, Luster, and Eye Appeal Across Generations of Collectors – Condition is everything. Here is how to look at the high points and fields to determine the true grade of this piece. I&…
• Grading the 2020 Israel 1 Shekel “Ruth” Gold Coin: A Professional Grader’s Breakdown of a 103-Mintage Modern Rarity – Condition is everything. Here is how to look at the high points and fields to determine the true grade of this piece. Wh…