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jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3159
Experience:  I've prepared all types of taxes since 1987.
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Proceeds of a county club equity membership were reported

Resolved Question:

Proceeds of a county club equity membership were reported to taxpayer on a 1099-B. Are they subject to capital gain/loss based on original investment?
Submitted: 7 years ago.
Category: Tax
Expert:  jgordosea replied 7 years ago.



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.

Best wishes.

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