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mphjr
Returning Member

If I sell an antique that I bought for personal use, can I deduct the cost basis or is the total proceeds taxable?

Buy antique pottery for 1000, display in my home for personal use.   I sell it for 1500.  How much is taxable, full 1500 or just the gain of 500?
5 Replies
Mike9241
Level 15

If I sell an antique that I bought for personal use, can I deduct the cost basis or is the total proceeds taxable?

just the gain is taxable and unless you are in the business of selling antique pottery (even if it was bought for personal purposes), the gain is capital gain reported on form 8949

 

SweetieJean
Level 15

If I sell an antique that I bought for personal use, can I deduct the cost basis or is the total proceeds taxable?

Collectibles are considered alternative investments by the IRS; and include things like art, stamps & coins, cards & comics, rare items, antiques, and so on. If collectibles are sold at a gain, you will be subject to a Federal capital gains tax rate of 28%, plus whatever your state charges.

mphjr
Returning Member

If I sell an antique that I bought for personal use, can I deduct the cost basis or is the total proceeds taxable?

Am I correct in that if I have 10 of these sales of any type of collectible item, I itemize each one on 8949?  Is it correct that a sale resulting in a loss can only be listed if it's a short term sale, not if it's a long term sale?  Does that mean that gains and losses can be netted out for short term sales but only for short term?

Critter-3
Level 15

If I sell an antique that I bought for personal use, can I deduct the cost basis or is the total proceeds taxable?

Am I correct in that if I have 10 of these sales of any type of collectible item, I itemize each one on 8949?   True. 

 

Is it correct that a sale resulting in a loss can only be listed if it's a short term sale, not if it's a long term sale?  False.  Collectibles are not considered personal use items even if you used them personally for a time ... they are investment items which can be sold at a loss. 

 

Does that mean that gains and losses can be netted out for short term sales but only for short term?  False.

mphjr
Returning Member

If I sell an antique that I bought for personal use, can I deduct the cost basis or is the total proceeds taxable?

Thanks.  All the doc I find on this repeatedly says you can't deduct a loss on Collectibles but I guess they must be saying that after all details are listed, netted at the short and long levels and at the final total of all level, if you end up with a loss, you can't deduct that.   Perhaps you can carryover some of that but just no deduction, correct?  Possible carryover is not that important to me.  Just trying to judge how this works and compare it as an alternative to operating as a business.

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