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Get your taxes done using TurboTax
See this example of personal items sold reported on IRS form 8949 / Schedule D Capital Gains and Losses.
Personal items sold for less than their basis (most likely, the original purchase price) report $0 capital gain on line 7 of the Federal 1040 tax return.
Personal items sold for more than their basis report the gain on line 7 of the Federal 1040 tax return. See this example.
Selling Cost
Price Basis
Couch $500 $2,000 Capital loss on personal item = $0 loss
Jewelry $400 $300 Capital gain on personal item = $100 gain
Chair $100 $100 No capital gain or loss
$1,000 $2,400
Schedule D will report a $100 long term capital gain.
Federal 1040 tax return line 7 reports $100 long term capital gain.
To report Personal item sales, follow these directions.
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Click Show more to the right of Other Common Income.
- Under Your income and expenses, click the Edit/Add button to the right of Form 1099-K.
- At the screen Did you get a 1099-K? click Yes.
- At the screen How would you like to enter your 1099-K? click Type it in myself. Click Continue.
- At the screen Choose which type of income your 1099-K is for, select the button for Personal item sales. Click Continue.
- At the screen Let’s get the info from your 1099-K, enter the information. Click Continue.
- At the screen Personal Item Sales, you are told that further information will need to be entered. Learn More provides detailed information for the next steps. Click Continue.
- At the screen Your 1099-K summary, notice that the income relates to ‘Sale of Personal Items’. Click Done.
- Under Your income and expenses, click the Edit/Add button to the right of Investments and Savings (1099-B, 1099-K….)
- At this screen, you will be asked to Review the Personal item sales (1099-K).
At the screen Now, enter one sale…., answer questions about the personal item sale. Click Continue.
The entry will be reported:
- on Schedule D of the Federal 1040 tax return, and
- on line 7 of the Federal 1040 tax return.
Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.
@stantonporsche
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