i own a contemporary art work (a painting) for 2 years. then i sell
it. what rate of capital gains tax do i have to pay under federal tax
rules and what rate under new york state tax rules?
note: normally "longterm" capital gains on "capital assets" trigger
15% federal capital gains tax rate. but is "art" a "capital asset" for
purposes of the federal tax code? and what capital gains tax rate
applies in new york state on art sales

Hello and thank you for your question.

Unfortunately the capital gains rate on "collectibles gain" is 28%.
http://www.irs.gov/publications/p17/ch17.html#d0e43073
http://www.irs.gov/instructions/i1040sd/ch02.html#d0e1050

New York taxes ordinary and capital gains income alike.
http://www.tax.state.ny.us/pdf/2004/inc/it201_2004.pdf
(line 7)

The maximum New York State rate is 7.7%
http://www.tax.state.ny.us/pdf/2004/inc/it200_2004_nys_tax_tables.pdf
http://www.tax.state.ny.us/pdf/2004/inc/it201i_2004.pdf
(page 30)

Your overall tax rate may be something less than the sum of 28% and
the NY rate, since there is a federal deduction for state income taxes
paid.  Whether you benefit from that deduction depends on whether you
benefit from itemizing deductions and whether you're subject to
alternative minimum tax.

Search terms used:
collectible capital -charitable site:irs.gov
tax rate table site:ny.us

Thanks again for bringing us your question.

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Richard-ga