Long term cap gains on JBL 100s. Who would have predicted that in 1972, when I bought mine?OK. I poked around on TurboTax and found this for a contrived $1500 1099-K from the sale of "Personal Items"
"How do I enter personal item sales that were included on this 1099-K?
We’ve collected your 1099-K information, but you’ll need to add more info about your sale in another section.
If you sold your personal item(s) for a loss, that loss cannot offset other income on your tax return like capital loss items (stocks).
- Select Continue on this screen.
- On the Your 1099-K Summary screen, select Done.
- From the Income Landing table, navigate to Investment topics, and select Start or Revisit for "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
- Go to Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) on the Income & Expenses screen. Select Edit/Add.
- On Your Investments and Savings Summary screen, you’ll see a line item for your 1099-K income. Select Edit or Reviewand enter the information for the first personal sale item.
- Be sure to select Personal Items under the What type of investment did you sell?
- The Cost or other basis amount should be the amount you originally paid for the item.
- Select Continue when you’re finished to go to the Review your Salesscreen.
- If there was more than one personal item sale included in the 1099-K amount, select Add another sale to add each item.
- If not, you can Continue.
If you sold your personal item(s) for a gain, then you’ll need to pay short or long term capital gains tax on it, depending on how long you held the item. This is why you should enter each item separately and not net them together."
So some takeaways...
They screw us on loss credits, but there will be no positive to carry forward as taxable income from the sale. I expected this to be the case.
They are looking at them as long term or short term gains last year. IDK if that will hold true in the future, but if they do, it accrues as non-business income and not subject to FICA or Medicare withholding, which is good.
So in a less Draconian world, where some reason still exists, I would expect that most folks selling personal goods won't be challenged for receipts on the JBL L-100s you bought back in 1972, but at the current market prices, I bet you will show a profit over the $576/pair plus tax you paid.