JamesG1
Expert Alumni

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

 

 

 

Table

Description automatically generated

 

 

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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