New IRS reporting rules on sales over $600
Dear Terry,
I am moving soon and will be using a relocation service to help. They have already ask me for my tax information because we will be doing an estate sale. I’m sure the proceeds will be more than $600 so they will be sending me some kind of 1099. Some of these items are 10 to 100 years old and I have no way to know what anyone paid for them. How will I be able to show the IRS that there is no taxable gain?
Thank you
Terry Says
That’s going to be a huge question for the IRS — and given how messed up they are, I have no idea how they will handle it. And I have a funny feeling that they haven’t thought this one through! So just keep an accurate list of the items you are selling, and the prices you receive. When the time comes (this time NEXT year) to report your “gains”, you can just estimate your very small profits –and I doubt they will be sending an appraiser out to those people who purchased the items to figure out if you are overestimating your cost basis!
