Ebay selling

Question

I am selling off a bunch of collectibles I inherited 50 years ago. I have no idea or records of what my parents paid for the items 50-60 years ago. How do I report my taxable gains to the IRS when I file my 2024 tax return?  If I keep the total Ebay sales under $5,000 do I even need to worry about it?

MatthewD · Accepted Answer

Hello,

When you inherit an item, its basis (or cost) is the value at the time your parents passed away.  So this can be really tough.  About the best you can do is provide an estimated basis and keep a record. Be reasonable.  If it was sold for a gain, then it must be reported. If it was sold for a loss, then you do not report the loss (or income from the loss sale).