Audit on inherited items

[spencerw67]

In 2022 I inherited collectibles that my father left my family after he passed away. I sold most of these items on Ebay in 2022 for around 27,000 dollars, or that was the amount reported to the IRS on the form sent by Ebay. Some of this money was given to my mother as her share of the items sold but it was all on my ebay account. I also had expenses for shipping and handling for every item sold and there were hundreds of items sold. I also do not think this includes the fees that ebay charges. I am not sure as to what would be my best course of action. I was under the impression that selling inherited items was handled differently. They have given me a few weeks to dispute the taxes. I purchased the audit  coverage for that year when I filed but am not sure where I access that at. 

[RobertB4444]

You are entitled to deduct the cost of items that you sell on ebay as well as costs you incurred (shipping, fees, etc.)  What you can't do is ignore the amounts you earned.  Which is what has happened here.

You need to amend your 2022 tax return to include a schedule C for selling property on ebay.  The amount earned will be $27,000.  The value of the items that you sold would normally be what you paid for them but in this case the value of the items that you inherited is whatever they were worth when your father died.  If you sold them within six months of his death then the value is assumed to be whatever you sold them for.  

You'll need to get into your ebay account history and find all of the items sold and get all of this set up that way.

You can contact the TurboTax Audit Support Center to see if you are qualified for any help with this.

@spencerw67