Originally Posted by Phonesxpres
Just wondering if I fixed and sold phones but ultimately ended up losing money is this a write off?
A loss from the sale or other disposition of property held for personal use is not deductible, except in the case of casualty or theft. Gain on the sale of property used for personal purposes is always taxable. In addition this rule is applied on an asset-by-asset basis. Losses on the sale of personal use assets are considered personal living expenses Unless expressly allowed as a deduction, such as medical expenditures and home mortgage interest, personal living expenses are not deductible. If you change property to business use, your cost basis later for determining loss is the lesser of its value or adjusted basis at the time it was put to use as a business asset. For example, if you began to use the phone two years ago for business and its value was $100 at that time, that would be your cost basis for determining depreciation deductions and for loss (but not gain) on its sale. For purposes of determining gain, you can use the original cost, minus your depreciation deductions.