TurboTax FAQ
TurboTax FAQ
335 people found this useful

Do I have to report personal items that I sold?

Let's say you sold your dining room set at a garage sale, or you sold your bike on Craigslist. Are you supposed to report the money you received?

The answer is, only if you sold it for more than what you originally paid.

Most of the time, personally-owned stuff like cars, appliances, clothing, furniture, and other household items decrease in value after the initial purchase. If you later sell them, it's almost always for less than what you paid, so there's no gain to report. (Or loss — the IRS won't let you deduct losses on personal items.)

But what about that vintage nut grinder you purchased for $5 in 1972 and recently sold on eBay for $75? Yep, you'd have to report the $70 profit as an investment sale.


What about selling a gift? Or something I got for free?

The original purchase price is considered to be what the giver — not you — paid for it.

So, if you received a $100 espresso machine as a wedding gift, and later sold it for $25, there's nothing to report.

On the other hand, if you sold your espresso machine gift for $250, you'd report the $150 profit as an investment sale ($250 selling price minus the $100 purchase price paid by the giver).

Related Information: