Sold my music records online

Forum|Forum|1 year ago
January 9, 2025
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I sold a big part of my music collection (records) and was paid with PayPal Friends& Family and also cash. I started this collection a couple of years ago and the records were already very expensive when I got it. My question is, can I rite of the value of the records? How can I estimate the value of what I paid when I can’t remember exactly and don’t have a receipt for it?

thank you

Not A Product Question

Vanessa A

Yes, the amount you paid for the records can be deducted from your profit to lower your tax liability on the sale. As you walk through reporting the sale of your records in TurboTax, you will be asked for the cost basis (what you paid for the records). However, you should not guess or estimate what you paid for the records. You can go back and check old bank records, PayPal transactions, Venmo history, ATM withdrawals or other methods you may have used to pay for them when you purchased them.

If you are unable to determine what you paid for the records, then it is best to enter $0 as you always want to be able to prove what you enter on your return.

Keep in mind, the sale of records would be taxed as Capital Gains instead of ordinary income if you have held onto these records for MORE than one year. This means, it is possible that the tax rate on the sale would be as low as 0% but no higher than 20% depending on your overall total income.

The capital gains rates are as follows based on income

Zero percent rate for the following income
- $44,625 for single or MFS
- $59,750 for HOH
- $89,250 for Married Filing Jointly
Fifteen percent for income more than above but less than below
- $276,900 for MFS
- $492,300 for Single
- $523,050 for Head of Household
- $553,850 for Married Filing Jointly
Twenty percent for the amount that your taxable income is over the 15% level.