Thanks for asking your question! I'm sorry to hear about your tax
issue and I'm going to try my best to help you understand or resolve it.
Thanks for your question -
You don't have to separate all of this out in the contract, but you can't stipulate in a contract that someone is giving you a gift. Then, the payment is no longer a gift.
Not only do you not need to put this in the contract, you will have a separate bill of sale for the furniture. You won't owe sales
tax because it's resale of personal property. You probably won't even owe income
tax on this either because chances are the agreed upon sales price for your furniture is far less than what you actually paid for it. Losses on personal property are not deductible
as capital losses
The best thing you could do is simply sell the furniture outside the sale of the home. If they don't pay you for the furniture as promised before closing, then remove the furnishings before closing. If the buyers of the property don't pay up, then it will be very easy for you to sell the furniture on Craigslist to other buyers.
The bill of sale doesn't need to list out each and every accessory. I'd list out the main things like the appliances and big furniture, but then have a catch all line for the knick knacky stuff. Something like:
King Size Bed
Queen Size Bed
Living room Furniture
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