You may sometimes wonder what escapes the tax man in the good old U.S.A. Most people know the impact of taxes on wages and other salary amounts, but few realize that there is no <a href="http://www.taxhelpvault.com/recommends/page64.html">IRS relief</a> for taxes also apply to personal property. The Tax Code defines just about everything you own and use for personal purposes, delight or investment as a capital asset. Now let's be clear here. Our focus here is on items like pleasure boats, houses, cottages, art pieces and so on. The tax man does not care much about you owning these items, except to ensure you don’t use creative accounting to avoid <<a href="http://www.taxhelpvault.com/recommends/page64.html">capital gains IRS</a> style. However, you will stir the IRS interest when you sell these items of property. In this case, the government matches the amount you paid for the item you sold with the sale price. You incur a capital gain or loss if there is any difference in the two prices. For example, if you buy a sailing boat for $25,000 and later sell it for $30,000, you have a capital gain of $5,000. On the other hand, if you sell the boat for $5,000 less than you paid for it, then you have a capital loss. 

Are you making any headway with your income preparation. Here is an article that might help:

There is an annual limit of $3,000 for capital losses in excess of  capital gains. You can deduct the extra amount on your tax return. 



