https://ttlc.intuit.com/community/taxes/discussion/selling-an-item-received-free-with-purchase-of-something-else/01/3415890#M1259706 <P>I bought a dishwasher this year while the manufacturer had a promotion of "buy a dishwasher and get a free coffee maker." I had to buy the dishwasher first, then send in the proof of purchase info, and then they sent me the coffee maker. I promptly sold the coffee maker on eBay.&nbsp;</P><P>&nbsp;</P><P>For the purpose of capital gains, what is the basis of the coffee maker?&nbsp;</P><P>&nbsp;</P><P>I spent $1506 on the purchase. The coffee maker's retail price is $1399 (although it sells on Amazon for more like $800). I sold the coffee maker for $528 after seller fees and shipping.</P><P>&nbsp;</P><P>In my mind, the $1506 purchase price was the cost of 2 appliances. But I don't know if I need to treat it as if it were a $1506 dishwasher and a $0 coffee maker, in which case I would have to pay short term capital gains on the $528?&nbsp;&nbsp;</P> Wed, 08 Jan 2025 05:12:51 GMT strawberrypizza 2025-01-08T05:12:51Z https://ttlc.intuit.com/community/taxes/discussion/selling-an-item-received-free-with-purchase-of-something-else/01/3415890#M1259706 <P>I bought a dishwasher this year while the manufacturer had a promotion of "buy a dishwasher and get a free coffee maker." I had to buy the dishwasher first, then send in the proof of purchase info, and then they sent me the coffee maker. I promptly sold the coffee maker on eBay.&nbsp;</P><P>&nbsp;</P><P>For the purpose of capital gains, what is the basis of the coffee maker?&nbsp;</P><P>&nbsp;</P><P>I spent $1506 on the purchase. The coffee maker's retail price is $1399 (although it sells on Amazon for more like $800). I sold the coffee maker for $528 after seller fees and shipping.</P><P>&nbsp;</P><P>In my mind, the $1506 purchase price was the cost of 2 appliances. But I don't know if I need to treat it as if it were a $1506 dishwasher and a $0 coffee maker, in which case I would have to pay short term capital gains on the $528?&nbsp;&nbsp;</P> Wed, 08 Jan 2025 05:12:51 GMT https://ttlc.intuit.com/community/taxes/discussion/selling-an-item-received-free-with-purchase-of-something-else/01/3415890#M1259706 strawberrypizza 2025-01-08T05:12:51Z https://ttlc.intuit.com/community/taxes/discussion/re-selling-an-item-received-free-with-purchase-of-something-else/01/3415922#M1259719 <P><SPAN>I agree,&nbsp;&nbsp;the $1506 purchase price was the cost of 2 appliances.</SPAN></P> <P>&nbsp;</P> <P><SPAN>Q.&nbsp; For the purpose of capital gains, what is the basis of the coffee maker?&nbsp;</SPAN></P> <P><SPAN>A. The prorated portion of the $1506 you paid.&nbsp;</SPAN></P> <P>&nbsp;</P> <P>&nbsp;</P> <P><SPAN>For example, if the retail price of the refrigerator was $2000 and the coffee maker $1399&nbsp; ($3399 total), then your cost basis in the coffee maker is 1399/3399 x 1506 = $620.&nbsp;</SPAN></P> Wed, 08 Jan 2025 13:31:40 GMT https://ttlc.intuit.com/community/taxes/discussion/re-selling-an-item-received-free-with-purchase-of-something-else/01/3415922#M1259719 Hal_Al 2025-01-08T13:31:40Z