BroccoliFarmer
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Unfortunately the rule when you cannot substantiate the basis in your property is that your basis is zero. Meaning you have to pay tax on the full sale price. It’s draconian!!What is annoying about this is when you sell something you’ve had for a 1-2 decades and you have no idea what your cost basis is. When it’s clearly not a business, you now have to keep track of everything you sell. I preferred the old ‘rules’ on eBay when it was 200 items AND $20k. I’m guessing the IRS won’t really care too much if the $ we’re talking about is minuscule compared to AGI but if it’s a significant portion of your income then they’ll care.