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February 1, 2020
Question

I have sold some collectibles, i did not and will not recieve a 1099 for the sale. how should i add this to my taxes. this was a one time deal, i am not a business.

  • February 1, 2020
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1 reply

DavidS127
February 1, 2020

It depends on whether you sold the collectibles for a gain or a loss, that is, did you get more than you paid for the collectibles?

 

Because you are not engaged in a business activity, you are selling personal property. 

 

Losses on the sale of personal property are not deductible.  So, if what you got for the collectibles is less than you paid for them, you don't have anything to report. 

 

Gains on the sale of personal property are capital gains, so if you got more than you paid for them, you have a capital gain that you report in the Investment Income section "Stocks, Bonds, Mutual Funds, Other".  The easiest way to get there:

  1. Click on the "magnifying glass Search" icon at the top left, enter "collectibles" in the search window and hit return;
  2. Click on the "Jump to collectibles" link.
  3. Follow through the interview questions until you get to "Now we’ll walk you through entering your sale details".
  4. In the box "What type of investment did you sell?" choose "Collectible". 
  5. Continue through the interview to enter the information requested.

If you got the collectibles as a gift or inheritance, consult IRS Topic No. 703 at this link for how to calculate your "basis", which is essentially "how much I have invested in the property".

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