If I sold old toys (like GI Joes) that were gifted to me a long time ago (for birthdays and holidays) for a profit would I use the cost basis (retail price back in the 1980s) or would I use the fair market value of the item to determine my gains?
02365
2 Replies
Mike9241
Level 15
Dec 29, 2022 12:55:03 PM
lower of donor's basis or fair market value on date of gift.
fanfare
Level 15
Dec 29, 2022 1:09:04 PM
the fair market value now is whatever you can get for it.
If you adjust your cost for inflation you probably have a loss (but IRS doesn't let you do that).