Reporting Auction Income
Auction income is like any other income. Although we recommend you seek the advice of a professional accountant, here are some general guidelines to consider.
Capital Gains
The IRS taxes an individual's gain on any capital asset that was sold for more than it was purchased. This can apply to any piece of property, from a share of stock to a classic car to a piece of fine art. If you are not in the trade or business but sell an item for more than it was purchased, technically the profit should be reported as a capital gain on Schedule D, Capital Gains and Losses (http://www.irs.gov/forms_pubs/index.html) with Form 1040. Realistically, most personal, nonmerchant auction transactions do not apply. Because of depreciation, ...
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