Personal-Use Property

Personal use property includes items that you do not use for business purposes and did not acquire for investment purposes. For example, your car, home, coin and stamp collection, television, and jewelry.

Although personal use assets are technically capital assets, they receive special tax treatment. A loss on the sale of personal use property is not deductible while a gain on the sale of personal use property is taxable.

This may not seem fair, but that's the way it is. But there is an exception: theft or casualty losses of personal use property is deductible. Casualty and theft losses for personal use property are figured on Form 4684. The deduction is entered on Schedule A (Form 1040).

File your personal and small business taxes (Schedule C)