Solved

Sales of Personal Property and Proper Records

Forum|Forum|3 years ago
August 31, 2022
1 reply
0 views

I have read the posts. What is still unclear to me is what the IRS will consider as a proper record for determining the basis of any item sold.

Also, I'm unclear as to whether other sales of personal property can be combined with sales of personal property on Ebay. I am selling things that have some value on Ebay. Other items I'm selling on Craigslist and garage sales. Can I combine all the sales to determine whether I have a gain or loss?

Best answer by Anonymous_

The best evidence would be sales receipts and, depending upon the circumstances, the IRS may not accept anything less.

However, pictures of the items and handwritten notes as to the prices paid and dates of purchase will most likely suffice.

Importantly, you cannot use losses on the sales of items held for personal use to offset gains on other items also held for personal use. In other words, you have to report the gains (and potentially pay capital gains tax on those gains) but cannot deduct the losses.

A

Anonymous_Answer

The best evidence would be sales receipts and, depending upon the circumstances, the IRS may not accept anything less.

However, pictures of the items and handwritten notes as to the prices paid and dates of purchase will most likely suffice.

Importantly, you cannot use losses on the sales of items held for personal use to offset gains on other items also held for personal use. In other words, you have to report the gains (and potentially pay capital gains tax on those gains) but cannot deduct the losses.