Mom died, daughter inherits all (no estate). Daughter sells Mom's personal belongings at an auction. Does that go on the Sch D as inherited property sale? No business assets, just furniture, kitchen stuff, etc. If so, can I take a loss because of cost of auction?
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Recent postings on other forms, has brought up the fact that if the client receives electronic payments (Paypal, or credit cards, etc) and they receive a 1099K, the IRS is going to be looking for a match on Sch C. Suggestions were to use Sch C and show no gain or loss as everything was personal. Without a 1099K, Sch D and show no loss.
As for the auction expenses - I don't see how you can deduct a personal expense, but in reality I have no idea.
Mike -
This is not a personal expense. It is an estate expense. There IS an estate, just maybe not probated. The estate consisted of only personal property according to the OP. Therefore, if it was sold at a loss (i.e, less than FMV) then there is a short-term deductible loss on Form 1041, Schedule D (1041) which would also include the auction fees. Loss is passed through to the bene on Form K-1. Practically speaking, what is obtained at an immediate auction would likely be the FMV, but not always.Last edited by Burke; 02-14-2014, 04:11 PM.Comment
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