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Get your taxes done using TurboTax
It depends. Be sure to keep all of your records and review the information below before you file. The indication based on your entry would indicate this is investment sales. Be sure you selected collectibles because there are different rules for maximum capital gains specifically for this.
- Personal use property sold at a loss: personal use property loss will not be allowed, but the income will not be taxed. The sales price and cost basis should be the same.
- Personal use property sold at a gain: This is reported exactly the way you did and the gain is taxable.
If this becomes more regular and constant here is information for your use.
Below is a review of Business versus Hobby income: This IRS link will help you: Business or Hobby?
Key elements:
- A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
- A business allows you to deduct the costs necessary to obtain the income. The law explains that 'you must be engaged in the activity to produce a profit'. The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.
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March 10, 2025
2:08 PM