Where do I report income for personal items?

Forum|Forum|7 years ago
June 5, 2019
5 replies
0 views

I unexpectedly sold a domain last year and want to report it in TurboTax H&B.

TurboTax Home & Biz Mac

Best answer by rjs

You should report it as a sale of a capital asset. This is similar to selling stock or other investments, but of course you don't have a brokerage statement for the sale. If you owned the domain for more than a year before you sold it, your profit will be long-term capital gain, which is taxed at lower rates than ordinary income. (If you have a loss on the sale, you cannot deduct the loss, since it's a personal item.)

Here's how to enter the sale in TurboTax. (The flow of the interview will be slightly different if you have already entered other investment sales.) The sale will be reported on Form 8949, Schedule D, and on Schedule 1 line 13. If it was short-term (one year or less) it will be in Part I of Form 8949 with box C checked. If it was long-term (more than one year) it will be in Part II of Form 8949 with box F checked.

In TurboTax Home & Business or Self-Employed click the Personal Tab. In other versions click the Federal Taxes tab.
In TurboTax Home & Business or Self-Employed click Personal Income. In other versions click Wages & Income.
Click "I'll choose what I work on" or "Jump to a full list."
On the screen "Your 2018 Income Summary," scroll down to the Investment Income section.
Click the Start, Update, or Revisit button for "Stocks, Mutual Funds, Bonds, Other."
"Did you sell any investments in 2018?" - Click Yes.
"Did you get a 1099-B or a brokerage statement . . . ?" - Click No.
"Choose the type of investment you sold" - Select "Personal Items" and click Continue.
On the next screen enter a short description, such as "Internet domain name." In Net Proceeds enter the amount you were paid for the domain, and enter the date of the sale. Click Continue.
On the next screen select how you acquired the domain. I assume it was by purchase. If you simply registered the domain name, that was a purchase.
"Any Business or Rental Use?" - Select "Personal use only" and click Continue.
On the next screen enter the date you originally acquired the domain, and the original cost (which might be just the registration fee). Do not include any renewal fees that you paid. Click Continue.
Proceed through the remaining questions until you get back to "Your 2018 Income Summary."

rjs

Employee

Since you are using TurboTax Home & Business I assume that you have a business of some sort or self-employment income. Was the sale, or the prior use, of the domain related in any way to your business or self-employment? What were you using the domain for before you sold it? Why was the sale unexpected?

A

Anonymous

Good point. No, I have H&B because my wife is an independent contractor. I am a W-2 employee and happen to have been randomly approached by a company who wanted to buy the domain. I was using the domain for hobby purposes. I don't personally have a business.

rjs

Employee

You should report it as a sale of a capital asset. This is similar to selling stock or other investments, but of course you don't have a brokerage statement for the sale. If you owned the domain for more than a year before you sold it, your profit will be long-term capital gain, which is taxed at lower rates than ordinary income. (If you have a loss on the sale, you cannot deduct the loss, since it's a personal item.)

Here's how to enter the sale in TurboTax. (The flow of the interview will be slightly different if you have already entered other investment sales.) The sale will be reported on Form 8949, Schedule D, and on Schedule 1 line 13. If it was short-term (one year or less) it will be in Part I of Form 8949 with box C checked. If it was long-term (more than one year) it will be in Part II of Form 8949 with box F checked.

In TurboTax Home & Business or Self-Employed click the Personal Tab. In other versions click the Federal Taxes tab.

In TurboTax Home & Business or Self-Employed click Personal Income. In other versions click Wages & Income.

Click "I'll choose what I work on" or "Jump to a full list."

On the screen "Your 2018 Income Summary," scroll down to the Investment Income section.

Click the Start, Update, or Revisit button for "Stocks, Mutual Funds, Bonds, Other."

"Did you sell any investments in 2018?" - Click Yes.

"Did you get a 1099-B or a brokerage statement . . . ?" - Click No.

"Choose the type of investment you sold" - Select "Personal Items" and click Continue.

On the next screen enter a short description, such as "Internet domain name." In Net Proceeds enter the amount you were paid for the domain, and enter the date of the sale. Click Continue.

On the next screen select how you acquired the domain. I assume it was by purchase. If you simply registered the domain name, that was a purchase.

"Any Business or Rental Use?" - Select "Personal use only" and click Continue.

On the next screen enter the date you originally acquired the domain, and the original cost (which might be just the registration fee). Do not include any renewal fees that you paid. Click Continue.

Proceed through the remaining questions until you get back to "Your 2018 Income Summary."

A

Anonymous

Fantastic. Thank you! Never would have looked there but my situation meets all the criteria presented.

rjsAnswer

Employee

You should report it as a sale of a capital asset. This is similar to selling stock or other investments, but of course you don't have a brokerage statement for the sale. If you owned the domain for more than a year before you sold it, your profit will be long-term capital gain, which is taxed at lower rates than ordinary income. (If you have a loss on the sale, you cannot deduct the loss, since it's a personal item.)

Here's how to enter the sale in TurboTax. (The flow of the interview will be slightly different if you have already entered other investment sales.) The sale will be reported on Form 8949, Schedule D, and on Schedule 1 line 13. If it was short-term (one year or less) it will be in Part I of Form 8949 with box C checked. If it was long-term (more than one year) it will be in Part II of Form 8949 with box F checked.

In TurboTax Home & Business or Self-Employed click the Personal Tab. In other versions click the Federal Taxes tab.
In TurboTax Home & Business or Self-Employed click Personal Income. In other versions click Wages & Income.
Click "I'll choose what I work on" or "Jump to a full list."
On the screen "Your 2018 Income Summary," scroll down to the Investment Income section.
Click the Start, Update, or Revisit button for "Stocks, Mutual Funds, Bonds, Other."
"Did you sell any investments in 2018?" - Click Yes.
"Did you get a 1099-B or a brokerage statement . . . ?" - Click No.
"Choose the type of investment you sold" - Select "Personal Items" and click Continue.
On the next screen enter a short description, such as "Internet domain name." In Net Proceeds enter the amount you were paid for the domain, and enter the date of the sale. Click Continue.
On the next screen select how you acquired the domain. I assume it was by purchase. If you simply registered the domain name, that was a purchase.
"Any Business or Rental Use?" - Select "Personal use only" and click Continue.
On the next screen enter the date you originally acquired the domain, and the original cost (which might be just the registration fee). Do not include any renewal fees that you paid. Click Continue.
Proceed through the remaining questions until you get back to "Your 2018 Income Summary."