If I buy an item 100% for business and claim it as a business expense, and later sell it at a loss, do I have to claim that sale income since I sold it at a loss?

[Erik1]

I am self-employed and bought an item 100% for business and claimed it as a business expense.

If I later sold that item at a loss do still I have to pay taxes on that income, or claim that income, since I sold it at a loss?

And if I do have to claim that sale at a a loss as income, can I put down the original higher price I paid for the item as my cost-basis, even though I already claimed it as a business expense separately.

Thank you.

[Vanessa]

Yes, you would need to report the sale of a business asset even if you sold it at a loss.  You already received a deduction for the price you paid for it, so now you will need to include the sale in your income. 

As to your cost basis, if you already took a deduction for it, you will need to report that as $0.  Depending on the type of item it was, it may not be that simple as you may have to recapture depreciation, but your basis will be reduced by the amount you already claimed.