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Old March 30, 2010, 03:32 AM   #38
RDak
Senior Member
 
Join Date: October 17, 2004
Location: Michigan
Posts: 734
Quote:
It's not all bad news...
You can deduct the cost of mileage to and from the gun shop !!!
You can deduct the transfer fees if you sell it to someone.
You can deduct the cost of the safe you keep it in before selling it.

For most of us, selling a gun, and filing a schedule C means we can deduct business losses from our real income. This is actually, potentially, quite good...
You wouldn't want to do that because that is for sole proprietorships and it would indicate you have a business of selling firearms. Plus, you'd have to pay the 15+ percent self employment tax on any net profits.

Just use the Schedule D to report these transactions. There is a space for deducting the cost basis.

I would imagine alot of these sales will not result in a profit. Being a personal asset, all you could do is reduce the gain to zero because the loss from the sale of personal assets is not an allowable loss for tax purposes.
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