Casual sale of personal items may be reported on Schedule D IRS form 1040 and Schedule 8949.
Personal items sold for less than their basis (most likely, the original purchase price) report $0 capital gain on line 7 of the Federal 1040 tax return.
Personal items sold for more than their basis report the gain on line 7 of the Federal 1040 tax return. See this example.
Selling Cost
Price Basis
Item 1 $500 $2,000 Capital loss on personal item = $0 loss
Item 2 $400 $300 Capital gain on personal item = $100 gain
Item 3 $100 $100 No capital gain or loss
$1,000 $2,400
To report such a casual sale of personal items, follow these directions.
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- You may need to click Add more income.
- Scroll down to Investments and Savings and click on the dropdown menu.
- Click Start to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
- At the screen OK, let's start with one investment type, select Other, Land, Second homes, Personal items.
See also this TurboTax Help.
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