RobertG
Expert Alumni

Investors & landlords

It would be more accurate to report this under investment income as the sale of an investment.  

 

It is not self employment income, and your basis is not a self employment expense.  It is a capital gain or loss transaction. The tax effect is the same either way, and the IRS should recognize that you reported the $20,000 on your return.  Just remember that your basis in the investment is also reduced by $20,000.

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