How do I avoid getting taxed when selling my video game collection from 15-20 years ago. Almost all of them will be sold at a loss from the $40-60 retail price, but how do I prove that? I never kept receipts and any other records such as credit cards have since been closed. I have about 200 games, am I just stuck paying taxes on all of them as if it's all profit?
How do I prove that I sold at a loss without receipts or bank records?
byu/Rich-Engineering1429 intax
Posted by Rich-Engineering1429
5 Comments
You can’t take a loss on the sale of personal items. You will report the proceeds, make the cost basis equal to the proceeds and indicate loss on sale of personal property. If you were holding them for investment or had a business you had an obligation to keep records.
Are you planning to get a 1099 from the sale? I wouldn’t worry. I wouldn’t report it to the irs. Unless you get a 1099, it’s not going to be reported to the irs.
Nobody cares about you selling 200 old video games for a fraction of original retail
You would need to earn over $20k on at least 200 transactions for it to come into play under current tax laws
How are you selling these items? If you are selling them through an online playform like ebay and expect to get 1099-K, you will report that it was sale of personal goods sold at a loss. If you are selling to a pawn shop and get cash, no need to report anything since you are selling at a personal loss.
report basis equal to the sales proceeds you receive, put it on Sch D/ Form 8949, Code F, and move on with your life.