How do i report proceeds from collectibles?

For the capital gains tax on collectibles to be calculated correctly, code C must be entered in column F, part II, of Form 8949. This should activate an entry on line 18 of Annex D and require the use of the tax worksheet in Annex D. To begin with, you must first declare any transaction on Form 8949 and then transfer the information to Annex D. In Form 8949, you will note when you purchased the asset and when you sold it, as well as how much it cost and why you sold it. Your buying and selling dates are critical because how long you keep the property determines your tax rate.