@MPiling wrote:
Hi, quick question on this.
I got a golf cart from the Miami Dolphins about 11-12 years ago. It was their old medical golf cart, decked out in Dolphins colors and Dolphins logo. They were getting ready to load it into a large dumpster, and I hauled it home and restored it. I got the golf cart for free, then gave it to my parents in The Villages. Years later, my dad didn't want it in his garage anymore, and I sold it on eBay. Since I paid nothing, and... I have absolutely no idea what the Dolphins paid for it. I sold it on eBay for I think ~$3,000... can't remember exactly but I can look it up if need be. Does this need to be claimed on my 2020 taxes?
Thanks!!!
In all likelihood, the organization depreciated the property during the course of their business, so their adjusted cost basis was zero. So whether it was a gift or a "found" item, your cost basis is zero, and the entire selling price is a taxable capital gain. You are required by law to report it and pay taxes. Since you held it more than 1 year, it is a long term capital gain, and the tax rate will be 15%, or possibly even zero % depending on your other income. But it should be reported as the sale of personal capital property on schedule D.
