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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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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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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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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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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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Thanks.
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