Selling My Stuff (Tom)

[Shell]

I'm closing the daycare, and I've been selling off many of my toys, outdoor climbers, etc.

I've sold some of it to a local Childcare business, and the check they've given me ($400) is a check from the business, not a person.

Do I need to declare any of this? I've read that sale of personal items doesn't need to be declared, but because I'm selling it to a business, is there any reason to have to declare it?

Thanks!

Edited to add: I have not declared 100% or t/s for any of these items. I bought them outright and am not getting nearly what they are worth, but need them gone!

[TomCopeland]

Selling stuff

I'm closing the daycare, and I've been selling off many of my toys, outdoor climbers, etc.

I've sold some of it to a local Childcare business, and the check they've given me ($400) is a check from the business, not a person.

Do I need to declare any of this? I've read that sale of personal items doesn't need to be declared, but because I'm selling it to a business, is there any reason to have to declare it?

Thanks!

Edited to add: I have not declared 100% or t/s for any of these items. I bought them outright and am not getting nearly what they are worth, but need them gone!

If you deducted 100% of the cost of these items as a business expense, then you need to report the $400 as income. If you deducted part of the cost of these items then part of the $400 is reportable as income. For example: If you bought these items for $2,000 and your time-space % was 40%, then $800 of the items were deducted. The business portion of the $400 is income. $400 x 40% = $160. Therefore, you would report $160 as income.

If you didn't deduct any of these items as a business expense and the $400 represents less than what you paid for them, you don't have to report any of the $400 as income.

It doesn't matter whether you sold it to a business or a person.

[Shell]

Thank you so much Tom for the thorough response.

The third scenario applies- I didn't deduct for any of them, and I am getting less than what they are worth.

Again, thanks so much! It's so nice to have you here for tax advise!