- quote -

Since most gifts of an old car are below cost, the basis is
gover's basis only for calculating gain, and FMV on date of
gift to figure loss, and of course loss on sale of personal
property is not allowed.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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Nan Eklund <naneklund[at]aol.com> wrote:

- quote -

Why would the scost be zero? The cost is either donor's
cost or if FMV on date of gift is less than donors cost,
cost basis is determined at time of sale.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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<rnewland[at]austin.rr.com> wrote:

- quote -

If you sell something at a garage sale AT A GAIN (i.e., sell
it for more than you paid for it originally), you have
taxable income. Most of the things you sell at a garage
sale are sold for much LESS than you paid for them. Alas,
losses on sale of personal assets are not deductible.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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rnewland[at]austin.rr.com wrote:

- quote -

the short answer is "yes".

items sold under these conditions are almost always casual
sales of personal property. Any gain you might have IS
taxable, yet any loss is NOT tax deductible (clear? fair?
nevermind)

If the cost or basis of any item, including the old car,is
less than sale price, report your gain. The cost/basis of
items given to you are the same as in the hands of whoever
gave it/them to you. for instance, if I give an old
office printer which has been depreciated long ago to my
daughter and she sells it in her garage for 30$, she has 30$
on which to pay tax.

Cheer$,
Harlan Lunsford, EA in LA

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rnewland[at]austin.rr.com wrote:

- quote -

Only if you made a profit on the sale if it is a personal
item(s). If the item was given to you, you would find out
what it was worth when it was gifted to you.

Missy

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<rnewland[at]austin.rr.com> wrote:

- quote -

Technically, if you sell anything for MORE than its cost
basis, you have reportable income. That rarely happens at a
yard sale. Losses on such sales (selling price less than
cost basis) would not be deductible, in any case.

An old car is most likely sold for less than its cost basis,
unless it is a restored classic. In the latter case, you
have a reportable gain (taxed at 28%) as a collectible.

If you sell an item that was given to you, your cost basis
is usually the cost basis of the donor or the FMV at the
time of the gift. Which one applies depends on whether you
sell for a gain or a loss.

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<rnewland[at]austin.rr.com> writes:

- quote -

Depends :-)

If you sell an item for more than you bought it for, you'll
have a taxable capital gain. If you sell it for less than
you bought it for, you'll have a *non-deductible* capital
loss, since losses are not allowed on the sale of personal
items.

- quote -

No change. However, your basis (and thus whether there
is a gain or loss) depends on what the person who gave
it to you paid for it.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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- quote -

If you had a gain, the gain is taxable. If you took a loss
(on each individual item of course) the loss is not
deductible. You get your giver's basis in the case of a
gift.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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They are generally ignored because the cost is greater than
the gross sale and you can't take a loss on personal items.
However, if the item was a gift, the cost is zero and you
might have a taxable profit.

The biggest problem is local taxes and sales taxes.

Nan, EA in LA

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<rnewland[at]austin.rr.com> wrote:

- quote -

It is very unlikely that you made a profit on the sale.

When you sell personal property you can have a gain or a
loss.

Gains are reportable and taxable while a loss on sale of
personal property is not taxable and, unless you get a form
1099 for that sale, is not reportable.

If you received property as a gift, your "basis" in that
property is the same as the giver's basis, unless it was
given to you at a loss. In that case use FMV on date of
gift to figure loss, and use giver's basis to figure gain.

Example 1:

Your parents give you a car worth $8000 which cost them
$20,000.

You sell it 5 years later for $4500. Use basis of 8000 to
figure youir loss which will be a loss of 3500. Since the
car is personal property, do not report it.

Example:

You sell that same car for $10,000. Inflation? Who knows?

Using 8000 to figure loss you discover there was no loss.

Using 20,000 to figure gain, you discover there was no gain.
Do not report. You have no gain and no loss to report.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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Are the sales made at a garage sale taxable income? What
about from the sale of an old car? How do these answers
change if the items sold were given to you?

thanks,
Ron

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