3 topics in one: collectibles, stepped up basis, installment sale

Client's husband died in 2013. He had no will and she said the only paperwork she did was to be named as personal rep to sell a vehicle titled in his name.

In 2014 she sold his collections: Guns totaling $10K, Toy tractors $10K, and full-size Oliver tractors totaling $130K. This is gross, so sales expenses will come out.

Would I be correct in saying the toy tractors and guns are not considered 'collectibles'? We can calculate the gain on those at 0 or 15%?

How does one determine if the full-size tractors are 'antique' or just collected due to the brand name? He used a few of them in his farming business, but many others he just fixed up and held on to, riding in parades, etc.

There are very few purchase records and no titles to determine ownership. Since they were married would the basis be 50% stepped up (for his ownership) and 50% cost (for hers)? Any idea how to determine cost? Any justification for 100% stepped up basis?

Finally, the auction company offered to hold part of the proceeds until 2015 to ease the tax burden. Since they are not the buyer, would that be allowed? Will there still be a zero rate on Capital gains in 2015?

Thanks in advance for any help you can give. ================ The tax code has its own definition for "collectible." If these fall outside, then yes.

Basis: Correct for a non-community-property state. However, anything bought before marriage would be a 100% step-up as it would not be subject to "tenancy in common" with a spouse. This is one of those cases where records should have been kept (but weren't).

Auction holding proceeds: No, unless the auction is in the last week or so of December 2014 such that there was insufficient time to compute the auction fees, etc., in the normal course of business.

Chances are that Congress will have a tax bill before the end of the year, but we have no idea what will be in it.