How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13017
Experience:  15years with H & R Block. Divisional leader, Instructor
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

hi I have question please this year I bought 2 luxury watches

This answer was rated:

hi I have question please this year I bought 2 luxury watches by my credit cards and I sold it to my relatives and I got good money but I am not doing that all the time what I should consider this when I fill this year tax return ?

Welcome to Just Answer,

If you sold the watch at a gain you should include the amount on line 2 on form 1040. If you sold the watch and you didn't make any money there would be nothing to report. Please let me know if you have any questions before you rate my answer. A positive rating is what I strive for. Regards Dave.
Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.

I have to disagree with some the information given above, especially about the reporting of the sale on "line 2 on form 1040".
Let me explain, almost everything you own and use for personal or investment purposes is a capital asset. When a capital asset is sold, the difference between the basis (usually cost) in the asset and the amount it is sold for is a capital gain or a capital loss.
Capital gains and deductible capital losses are reported on Form 1040, Schedule D (PDF), Capital Gains and Losses, and on Form 8949 (PDF), Sales and other Dispositions of Capital Assets.
Gains are added to your income but losses on personal property are not allowed to subtract from your income because they are personal use property.
Now you stated "but I am not doing that all the time". If you are making money doing this on a regular basis and it is not an occasional sale, you would just report the transaction as I stated above on the forms. When trying to make this choice look at it like a garage sale (happens maybe 2 times a year. Not an ongoing activity. If you are doing this more often you maybe in a business.

I sincerely XXXXX XXXXX information is useful.
Sorry I meant to say line 21 which is the same tax rate as a short term capital gain since you purchased this year and the same out come. If if this was sold at a loss there would be no deduction.
Line 21 is not the correct line to list this income. You made a purchase then resold to someone else. It is a sale.
Customer: replied 2 years ago.

thank you so much for your information just I want o clarify something

honestly my relatives request me to find these watches I mean I didnt buy it to own what happened they sent me money but I was keep searching for those watches online until I found it online on sale then I bought it and I send it and the price difference was mine witch was good money like 8000$ so just miss robin I need to be sure when I fill this year because last two years I filled and then now I am going to amend it because of such issues.

If you received $8000 more for the watches then you paid you are required to report in as a sale.
Just show the purchase date on the 8949 and the sale date. You will be paying US tax on the difference.
When you amend just make sure to include this.

Customer: replied 2 years ago.

thank you just if you can make it easier for me where is exactly on Turbo Tax soft ware .which section please because it is confusing ?

In Turbo Tax look under Wages & Income page, down in the investment income section...then the software fills out the 8949 for you. (and the Schedule D)
Customer: replied 2 years ago.

If I amend and the calculation was they (IRS ) gona get part of credits back would they charge me penalties or interest or this in case only when I own them money because I still have credit even after I might

need to return part of the credit please answer me about that .

You would only be charged interest and penalty if you have a balance due on the 1040X. If you do not owe anything when you complete the 1040X you would not have any interest or penalty to pay.
Customer: replied 2 years ago.

just to be sure that I have understood as example if I had refund 4000$ for my 2012 return and I amend this return and the result was to return 2000 $ to the IRS I would not be charged but if I they got more than 4000$ and then I will own them I will charged , Am I right ?

Yes you are correct, if you have any balance due on that 1040X then you will be charged interest and penalty.
The interest will rum from the original due date of the return.
You just need to send in the payment that shows on the 1040X and the IRS will then send you their calculation for any extra due. You can then send in the interest requested and ask that they "abate" any penalty assessed. This means you would not have to pay the penalty if your reason was accepted.
If you have never asked to abate penalty before, the IRS generally allows and will not ask for the penalty amount after your request to abate.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13017
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and 3 other Tax Specialists are ready to help you
Customer: replied 2 years ago.

so if they got part of the refund I wouldnot be charged , right ?


No, you have to actually request the abatement and then the IRS would say yes or no. You will have to pay the total interest that they say they want.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Previous | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA

Meet The Experts:

  • Wallstreet Esq.

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
< Last | Next >
  • Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
  • Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • Richard's Avatar


    Tax Attorney

    Satisfied Customers:

    29 years of experience as a tax, real estate, and business attorney.
  • Robin D.'s Avatar

    Robin D.

    Senior Tax Advisor 4

    Satisfied Customers:

    15years with H & R Block. Divisional leader, Instructor
  • Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
  • jgordosea's Avatar


    Enrolled Agent

    Satisfied Customers:

    I've prepared all types of taxes since 1987.
  • R. Klein, EA's Avatar

    R. Klein, EA

    Enrolled Agent

    Satisfied Customers:

    Over 20 Years experience