Sale of personal items may be reported on Schedule D IRS form 1040 and Schedule 8949.
Personal items sold for less than their cost basis (most likely, the fair market value of the item on the date of the owner's death) report $0 capital gain on line 7 of the Federal 1040 tax return.
Personal items sold for more than their cost basis report the gain on line 7 of the Federal 1040 tax return. See this example.
Selling Cost
Price Basis
Item 1 $500 $2,000 Capital loss on personal item = $0 loss
Item 2 $400 $300 Capital gain on personal item = $100 gain
Item 3 $100 $100 No capital gain or loss
$1,000 $2,400
In TurboTax Online, to report such a sale of personal items, follow these directions.
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- You may need to click Add more income.
- Scroll down to Investments and Savings and click on the dropdown menu.
- Click Start to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
- Click Add investments.
- At the screen Let's import your tax info, select enter a different way.
- At the screen OK, let's start with one investment type, select Other, Land, Second homes, Personal items.
Shipping costs may be recorded at the screen Let us know if any of these situations apply to this sale under I paid sales expenses....
See also this TurboTax Help.
@CA_Olson
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