To File or Not to File

[dyne2]

The sale of personal items at a loss are NOT required to be reported and would not
require him to file a return. If these were INVESTMENT items which they might be
considered to be if they were COLLECTABLES, he should file a tax return. The fact
that he sold the items at a LOSS argues that they were personal, not investment items
and he would NOT be required to file a return.

[erchess]

That's the Rub Dyne

The IRS can easily prove that he sold some stuff for $107K. The question is what case can he make that he had any basis at all in any of the stuff. Let's suppose that the tax on the whole lump is $40k but he spends $41k proving sufficient basis to erase all the tax. He's out $1k more than he needed to be.

[Snaggletooth]

Thanks

Thanks to everyone who posted. Erchess, you're back in the saddle with your thinking.

Enough on several sides of the issue to help me determine what to do.

Bob W - not the most aesthetically pleasing advice, but good advice nonetheless.

Thanks.