What if I sold a personal tractor to a business and got a 1099 misc - why is this causing a taxable event? Or what am I missing that is causing it to be taxable?

The sale of personal items are taxable, but you are allowed to offset it with the cost of the property up to the sales cost. While you cannot create a loss, you can in effect report it netting to zero. To do this in TurboTax, follow these steps:

1. From the left menu, go to Federal and select the first tab, Wages & Income
2. Add more income by scrolling down to the last option, Less Common Income, and Show more
3. Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
4. Choose the last option, Other reportable income and Start and Yes
5. Enter the applicable description and amount and Continue
   1. First, enter Form 1099-MISC as received. It is essential that the full amount be entered. Be sure to include in the description: Personal Property Sales (For example, the entries were Description Personal Property Sales and 100)
   2. Next, repeat this process with the cost of the items sold. The IRS allows a deduction for personal property up to the amount of the sale.
      • You should be at Other Miscellaneous Income Summary with the Personal Property Sales amount listed.
      • Select +Add Another Income Item on the lower left side.
      • At Other Taxable Income enter Cost of Personal Property for description and the negative amount and Continue. (To continue with the example, the amount would be -100.)
      • Now returned to Other Miscellaneous Income Summary, select Done.