Have Tax Questions? Ask a Tax Expert for Answers ASAP
Sale of a capital asset does have to be reported for personal use property. Gain on the sale of personal use property is included in income subject to tax at capital gain rates; but a loss of personal use property is not allowed.
An example is for sale of a personal residence. Gains are included (currently in some cases only the gain over the amount excluded if you own and occupy fro two of the five years prior to sale); but no loss is allowed on the sale of a personal residence.
Yes, this sale should be reported but if a loss resulted just mark it as personal use property and do not offsent other gains by any of this loss. Most tax software will have a category for marking items as personla use and make the proper notation.
I hope this helps for reporting the sale of a personal use capital asset.