Recently I sold out an antique that I had bought for personal use in 2004. I incurred a 3,500 loss due to the disposition. Is the loss a capital loss?
2007-05-11 04:12:03 · 4 answers · asked by Mike 1 in Business & Finance ➔ Taxes ➔ United States
The personal use makes your loss non-deductible.
From the IRS website:
Personal-use property. Property held for personal use is a capital asset. Gain from a sale or exchange of that property is a capital gain. Loss from the sale or exchange of that property is not deductible. You can deduct a loss relating to personal-use property only if it results from a casualty or theft.
2007-05-11 04:15:47 · answer #1 · answered by VATreasures 6 · 0⤊ 0⤋
No, you can't claim a capital loss on personal items. If you'd had a gain though, you'd be required to report it and pay tax on the gain.
2007-05-11 11:16:24 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
It is a capital loss but it is not deductible. You cannot deduct losses on capital assets bought for personal use.
2007-05-11 15:10:26 · answer #3 · answered by ninasgramma 7 · 1⤊ 0⤋
Yes, it is a capital loss, so on your tax form you can play it off against any capital gain you did make
For example:
If you sold your house and got 4,500 capital gain, you would only have to pay capital gains tax on 1000
4,500 - 3,500 = 1000
2007-05-11 11:14:50 · answer #4 · answered by Anneska 2 · 3⤊ 3⤋