I stand to make a substantial gain from selling some artwork that was gifted to me about 15 years ago.

Does anyone know how I report the cost basis for this artwork, and if there is any way I can lessen the 28% collectibles tax.

This artwork was on the walls of my house for the 15 years, and I am not a professional collector or dealer.

Your cost basis would be the same basis as it was for whomever gifted it to you. If the person who gave the art work to you purchased it, then it would be that person's purchase price.

Art work is normally considered a collectible, and so any gain would be taxed at the higher rate, even if you had in hung on your wall. Same thing goes for antique furniture and rugs.

Thanks for your answer. Person who gifted it inherited it. And there is no record of purchase price.

Then the cost basis is the fair market value when your benefactor inherited it. If the decedent's estate was sufficiently large to have filed state taxes, and if the piece had any substantial value, the executor of the estate may have a record of the FMV for it at the time. Alternatively, there are appraisers who can give you an estimate.

Thanks for your advice. I really appreciate your thoughts.