I have a motorcycle that was gifted to me in NYS. I am going to sell it do I need to report it on my taxes?
I know that I only report capital gains and I inherit the cost-basis from the previous owner but I believe it was gifted to him too. I am the 3rd owner and it was gifted twice.
1st owner -> gifted (second owner) -> (gifted) me
I also plan to sell it below what Kelly Blue Book has listed as average price of the used motorcycle.
Your basis is the first owner's basis. The Kelly Blue Book value or the current market value has nothing to do with your basis or your gain.
If the person you are calling the "1st owner" purchased the motorcycle new, your basis is what that first owner paid for it. Chances are you will be selling it for much less than that (unless it's a collector's item that has increased in value). If you sell it for less than your basis, you have a loss. In that case, you do not have to report the sale. If you own it for personal use, not business use, you cannot deduct a loss on the sale of a personal item.
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