Where do I report profits from depreciated equip sold on ebay? One time sale. Got a 1099K as a MA resident, 4.5k gross sales. Retired, no longer in business.

[dpbill2000]

I have not seen an answer yet that deals with selling depreciated equipment from a old business. PayPal now required to send 1099K's for all sales to MA residents. I am OK with paying taxes on a gain since the equipment was depreciated but I am not running a business on eBay. I am clearing out the garage of no longer needed equipment . One time sales, just like a garage sale but in this case I am making money. Do not want to use Schedule C to pay self employment tax.

[DianeW · Accepted solution]

You will need the total depreciation that was used for each of your business assets that were sold. If they were fully depreciated then your cost basis for sale is zero. This is not reported on Schedule C and it is not subject to self employment tax.

Any depreciation used as an expense on his returns will have to be recaptured at the max 25% (lower if you are in a lower tax bracket).

1. Sign into your TurboTax account (online or desktop)

2. Use the search box in the upper right

3. Search for sale of business property

4. Jump to sale of business property

5. Follow the screen prompts to enter your sale  (see image attached)

6. Answer - Yes, it was sold at a gain and you took depreciation on this property

[dpbill2000]

Do I have to list all 26 items I sold, original cost, etc.? Some older than 20 yrs sold at pennies on the dollar.

[DianeW]

@dpbill2000 You can combine some of them, be sure to keep all your records of substantiation.