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Sale of Home which includes expensive furniture

Ephesians3-14
Level 8

I have a client who sold their home for $1.6MM in 2022. Included as part of the $1.6MM sale were $200,000 of household items (colonial furniture, etc.). She actually has receipts for the furniture which she paid $90,000 for in the 1980s. Do I need to report the gain on the sale of the furniture separately as a capital gain....or can it be part of the $500,000 personal residence exclusion?

Any input would be appreciated.

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4 Comments 4
jeffmcpa2010
Level 11

What was the sale price on the 1099-S?

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Ephesians3-14
Level 8

$1.6MM

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Ephesians3-14
Level 8

I think I found my answer....in Pub 523

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taxes96786
Level 9

Not if it was included in the sales price. Yes if it wasn't

 

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