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Sales of Personal Property In addition to securities transactions, the IRS requires the sales of personal property (real estate, cars, trucks, boats, collectibles, or anything on auction sites such as e-Bay™, etc.) that resulted in a profit be included on the Schedule D. Although you may include sales of personal property on SkedDee it may be less useful because personal property is usually singular and unique and thus does not require an aid to match a transaction with an inventory. In addition, a sale of a primary residence can claim exclusion amounts (up to $250,000 for singles and $500,000 for joint filers). If this manual adjustment results in a profit of zero, the sale should be omitted from the schedule. Another possible cause of adjustment is if the taxpayer is subject to the alternative minimum tax (AMT). In general, if you sold personal property that resulted in a loss, you cannot include the sale on Schedule D and benefit from the loss. For details see the section “Further Information”. Note: if you include sells executed at more than one broker or include sales of personal property, the proceeds amount in the 1099-B will not agree with SkedDee’s. Comparing the two amounts verifies that the trades have been entered correctly and should agree within a few dollars. The IRS checks the proceeds amounts to confirm tax compliance. If You E-File Your Return If the tax preparation service which e-files your 1040 is unable to accommodate your trades on their Schedule D, show the totals on the Schedule D and indicate that an IRS form 8453 with attached trade detail is to follow in the mail. The print-out must be organized exactly as on the Schedule D-1 (short-, long-term sections, with description, acquire date, sale date, sale price, cost basis, and profit columns) and must be sent immediately after the e-filing. In addition, to complete the 8453 your tax preparation service must provide the mailing address (Andover, Mass. or Austin, Texas) and your return’s declaration control number (DCN) so the mailing can be matched with the e-filed return. |
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