Yes. It's one of those tax issues. It's important to separate the personal property (anything that is not real property in tax terms) from real property. In the tax law there are only two kinds of property.
- Real Property (anything that is land, buildings and structural components)
- Personal Property - Two Types
- Tangible - anything you can see, feel or touch
- Intangible - in and of itself it has no value but represents a value (a dollar bill or a stock certificate, etc)
The reason is simple. Real property has special tax treatment rules and personal property income is taxed at the ordinary or regular tax rate. Do the best you can and document how you arrived at your costs. The IRS will likely accept your reasoning if you don't have receipts.
@tomboy257
[Edited: 02/24/2022 | 9:38a PST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
