Buy and sell client-can I post all income and expense on Schedule C ? Can I put larger items on a schedule D for capital short or long term?

Forum|Forum|3 months ago
March 10, 2026
3 replies
13 views

I have a client that buys to sell constantly. Some at auctions, some at rummage sales and flea markets and some just outright buying an item to sell.

I have been putting the larger items he sold for over $500 on short or long term loss and the sheets with multiple items on from an auction on Schedule C as bought and sold. Proper to put all of those in Box 1 sales and purchases to sell on miscellaneous expense or more proper to use cost of goods sold lines.

ProSeries Professional

IRonMaN

Level 15

Sounds like cost of goods sold to me.

Slava Ukraini!

T

TaxGuyBill

Level 15

@sbring wrote:

I have a client that buys to sell constantly.

I have been putting the larger items he sold for over $500 on short or long term loss

It should all be on Schedule C. Nothing should be on Schedule D.

qbteachmt

Level 15

You are confusing large cost and Asset. If I buy and sell airplanes, they cost a lot, but that's regular sales.

If he's not using that item, it's regular sales, not Schedule D.

If I use an airplane to travel around the world to make sales presentations, take clients out on demonstrations, and it is my office, that makes it my Asset. it is In Use by me for business purposes. As an asset, it falls under asset regulations.

It's important to know the difference between Expense and Expenditure.

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