- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Yes, if you do not consider this a hobby or a business then the investment sale is the best and correct way to report the sales. The link was posted to give you information about a hobby versus a business. If you are not in the business or hobby of buying and selling, except in a few instances this is neither a hobby or a business. The new rule was put in place to track the third party vendors' activity but it creates a challenging experience for the taxpayer.
There is an option to remove sales and cost of items sold if there is a loss on certain items. It does not provide a blanket exemption or removal of income for items where a gain occurs. Your records will be very important. The advantage of using the sale of personal items is that you have the ability to reduce any gain by the cost of the item that produced the gain. And if that item was held for more than one year, you would also have the capital gain tax treatment on any gain (lower tax on this transaction than your ordinary tax rate on your other income).
The IRS does know that the sale of household items or clothing usually results in a loss because they depreciate and they are not used for business purposes.
In the end you must decide what best describes your situation.
@InformedB
**Mark the post that answers your question by clicking on "Mark as Best Answer"