OK. So, I just got off the phone with the IRS. Spent over an hour transferred to six people and got nothing except a head ache.

So, a foreigner becomes a US citizen one week ago and decides to sell a painting in London for $1million. His cost basis was $12,500 from 30 years ago. And he is or was an art dealer.

What is his tax?

Is it unearned income?

Or is it inventory?

Collectable at 28%?

Pub 551 deals with alien status? Can his cost basis be the day he became a US citizen? Or does he just pay 28% on the sale minus the cost?

The IRS advance tax law area genius couldn't give me a straight answer.

Thank you

PL

peter lundstedt RIA, Greenwich