I inherited a fairly large 1960's/70's toy collection from my uncle back in 2010. I'm wanting to sell some of it now and am unclear on tax strategies in doing so. I already have an eBay account in the name of my Sole Proprietorship and would like to use that account since it has thousands of followers already (and will likely generate the highest prices for me). Since eBay sends me (and the IRS!) a 1099 at the end of the year (on every sale I make), I want to try and minimize any tax burden on the sale of these toys. So on a sample transaction, would it look like this(?).......Sale price of toy on eBay= $100. Less: eBay commission ($15), less inherited value of toy in 2010 ($70) = $15 taxable liability????? To keep things “clean” would I sell the lot of toys to my Sole Proprietorship at fair market value, then have the Sole Proprietorship write me a check which I would then report on my personal 1040, IRS form 8949 (noting the inherited basis which I am entitled to)?
