How to Report the Sale of Equipment on a Tax Return

Individual Property

• 1). Determine how long you had the property. If it is one year or less, then use Form 1040 Schedule D Line 1. If it is one year and one day or more, then use Form 1040 Schedule D Line 8.
  
  
• 2). Write the description of the property under (a).
  
  
• 3). Write the day you bought or acquired the property under (b).
  
  
• 4). Write the day you sold the property under (c).
  
  
• 5). Write how much you sold the property for under (d).
  
  
• 6). Write your basis in the property under (e). The basis is the cost of your property minus any depreciation on the property plus any amounts capitalized to the property, such as improvements.
  
  
• 7). Subtract (e) from (d) to find your gain or loss on the property and report the amount under (f).