Assuming the computer was not ever used as a business asset, you should use the investment sale section to report the sale of personal use items. See instructions below.
Most of the time, personally-owned things decrease in value after the initial purchase. If you later sell them, it's almost always for less than what you paid, so there's no gain to report, and the IRS does not allow taxpayers to deduct losses on personal items.
But what if you do have a gain OR you received a 1099-K because you sold the items online? You should report these transactions as investment sales as capital transactions. Choose your product for instructions.
TurboTax Online
- Open (continue) your return in TurboTax.
- In the search box, search for investment sales then select the Jump to investment sales link in the search results.
- Answer Yes to the question Did you sell any of these investments in 2021?
- If you land on the Investment Sales Summary screen, select Add More Sales.
- Select Other, then Continue.
- On the Tell us more about this sale screen, enter your name or the issuer’s name if you received a 1099-K.
- On the next screen, change the type of sale to Personal Items and Continue. The type of sale is indicated in the first box on the Now, enter the sale screen.
- Continue following the onscreen instructions to enter the sale.
To ensure your tax return is complete and correct, do not skip step 7.
TurboTax Desktop
- Open (continue) your return in TurboTax.
- In the search box, search for investment sales then select the Jump to investment sales link in the search results.
- Answer Yes to the question Did you sell any of these investments in 2021?
- If you land on the Investment Sales Summary screen, select Add More Sales.
- Answer NO to the Did you get a 1099-B for this sale? question.
- Select the first option, I’ll enter one sale at a time.
- Enter the details about the item you sold and Continue.
- Click Continue on the less common items screen.
- Answer NO to Was this a sale of employee stock?
- On the next screen, less common adjustments, mark the box next to Any loss from this sale is not deductible. Then choose personal use property from the drop-down menu. This will ensure you don't take a loss and overstate your tax deductions.
TurboTax will calculate the holding period. Do NOT skip the last step. @shuren
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