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trashcan2
New Member

Can I claim the sale of a doll collection on Ebay ( no 1099K required) as a Long term Capital gain dolls were acquired over years?..

I filed as a business for a number or years but closed the business in 2015 and have not sold any since then.  I collected dolls for years before selling any and still have approx 1,000 dolls, shoes and clothing items.  Just want to slowly liquidate the collection.   

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DanielV01
Expert Alumni

Can I claim the sale of a doll collection on Ebay ( no 1099K required) as a Long term Capital gain dolls were acquired over years?..

Yes, you may.  The question, though, is where you report it.  If the dolls were never a part of your business, you report the amount on Schedule D.  You could also report the dolls on Schedule D if you purchased them for your business but never took any expenses against them (thus, when you liquidated your business, it simply became personal property).  In either of these cases, you would never have reduced your original basis, and the income would be the difference of the sale price from the original price.  

However, if you held the dolls in your business, and you did take deductions (whether you had taken an inventory deduction or depreciation of some sort) on your dolls, you would  you would report the sale through Form 4797.  Income would still be predominantly capital gains, but there could be a portion of the income that receives a different tax treatment (depreciation recapture, for example, is treated as ordinary income instead of a capital gain), which is handled on that form as compared to Schedule D.

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1 Reply
DanielV01
Expert Alumni

Can I claim the sale of a doll collection on Ebay ( no 1099K required) as a Long term Capital gain dolls were acquired over years?..

Yes, you may.  The question, though, is where you report it.  If the dolls were never a part of your business, you report the amount on Schedule D.  You could also report the dolls on Schedule D if you purchased them for your business but never took any expenses against them (thus, when you liquidated your business, it simply became personal property).  In either of these cases, you would never have reduced your original basis, and the income would be the difference of the sale price from the original price.  

However, if you held the dolls in your business, and you did take deductions (whether you had taken an inventory deduction or depreciation of some sort) on your dolls, you would  you would report the sale through Form 4797.  Income would still be predominantly capital gains, but there could be a portion of the income that receives a different tax treatment (depreciation recapture, for example, is treated as ordinary income instead of a capital gain), which is handled on that form as compared to Schedule D.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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