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).

QuickBooks Self-Employed
For Freelancers and independent Contractors

- Organize your financial data into one central accounting system on the cloud
- Software kept up to date.
- Your data kept secure
- Anytime, anywhere data access.
- Pay your quarterly estimated taxes online.
- Export Schedule C to TurboTax at year-end for faster filing.
- Save up to 50% off QuickBooks Self-Employed. Track every deduction! Start your free trial now!

Have an accounting or bookkeeping question? Email it to me.