An individual taxpayer sells some used assets in a garage sale. Why are none of the proceeds taxable in most situations?
What usually constitutes evidence of a "sale" of property for tax purposes?
What is the difference between a "worthless security" and "1244 stock"?
How is it possible to have a casualty gain from the disposition of depreciable business property held more than a year? Is the gain initially a 1231 gain?© BrainMass Inc. brainmass.com June 4, 2020, 2:11 am ad1c9bdddf
The garage sale items are not taxable because first they are usually sold at a loss (compared to their original purchase price) and second, the loss is a personal loss and not deductible. So no gain, and no loss.
Although there are differences for various types of property, generally evidence of sale of a property can include:
1. Transfer of title for personal property such as vehicles
2. Transfer deed for real ...
This solution answers various questions on accounting practices, such as what constitutes evidence of a property sale, the difference between worthless security and 1244 stock, and how to have a casualty gain from the disposition of depreciable business property.