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Author: brettrkr Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Taxing item sold in auction? Date: 11/26/2001 8:01 AM
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Say I sell a $400 espresso machine (purchased on Mar 10 2001) for $320. It's sold at an online auction on Nov. 15 2001. My net loss is $80. Am I to report this and how is it taxed?

How does the additional $15 shipping ($320 + $15 = $335) figure into this?

At what point do I need to start reporting items sold in auctions and other selling channels?

Thanks,
Brett
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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 55460 of 121144
Subject: Re: Taxing item sold in auction? Date: 11/26/2001 8:38 AM
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At what point do I need to start reporting items sold in auctions and other selling channels?

When you make money (sell for more than your adjusted basis) doing it. Losses on the sale of personal-use property are not deductible, and you don't report the sale anywhere. Gains are taxable, and life isn't fair. See IRS Publication 525 for a starting point.

Phil Marti

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Author: brettrkr Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 55520 of 121144
Subject: Re: Taxing item sold in auction? Date: 11/27/2001 7:41 PM
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Does it work the same way with an automobile? I buy it for $10,000 and sale it for $5,000.

Thanks,
Brett

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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 55523 of 121144
Subject: Re: Taxing item sold in auction? Date: 11/27/2001 7:51 PM
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Does it work the same way with an automobile? I buy it for $10,000 and sale it for $5,000.

Let's review, Grasshopper.

Is the automobile personal use property? Did you make $5k or lose $5k on this transaction? Can you read Phil's response?

--Peter

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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 55524 of 121144
Subject: Re: Taxing item sold in auction? Date: 11/27/2001 8:50 PM
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Does it work the same way with an automobile? I buy it for $10,000 and sale it for $5,000.

As long as you didn't take a deduction for business use of it, yes.

Phil Marti

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Author: brettrkr Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 55530 of 121144
Subject: Re: Taxing item sold in auction? Date: 11/27/2001 11:33 PM
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Thanks.

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