Welcome back! Ask questions, get answers, and join our large community of tax professionals.
Showing results for 
Search instead for 
Did you mean: 

Is income from Garage Sales taxable ?

Dealing with the IRS if furnishings sold with a Vacation Rental is garage sale income.  They're saying that the furnishings cannot be added to the basis of the property,  I want to deduct the income from the sale of the furnishings from the Gross Sales Price,  and the IRS said it would be considered income from a garage sale,  and would go under other income.  Any thoughts ?  Thanks

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

5 Comments 5
Level 8

How were the furnishings acquired.

Level 15

"cannot be added to the basis of the property"

How was this property (the furnishings) being treated for the tax filings? It would have been separate from the Real Estate all along, of course. So, in this regard, the IRS is right.

"Level Up" is a gaming function, not a real life function.
Level 15
Level 15
were they depreciated separately from the dwelling while it was a rental?
were they sold separately from the dwelling?

Level 15

Greetings New User - ,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support of the not so professional .

Have a wonderful day!


Here's wishing you many Happy Returns
Level 15

I'm not quite sure what your actual question is, but rental furnishings that are sold go on Form 4797.

If the  furnishings were used as a deduction (either because they are $200 or less or because they fell under the De Minimis election to deduct them), it would be Ordinary Income in Part 2.  If they were depreciated, they would be reported in Part 1 or 3, and you have depreciation recapture.