Do I need to report furniture and other household items I sold from an inherited house?

What if they didn't get an official appraisal of the furniture when they inherited it? How would they figure out the fair market value from the time of death now?

Thanks for the explanation about the stepped-up basis. I definitely didn't get any formal appraisals done. Most of it was just regular household furniture - couches, tables, beds, kitchen stuff, nothing valuable or antique. I probably got around $3,800 total for everything, and I'm sure it was all worth at least that much when I inherited it. If I don't have documentation of the fair market value at the time of inheritance, how do I prove there wasn't a gain if the IRS asks? Should I just estimate what I think everything was worth?

For everyday household items without an appraisal, you can make reasonable estimates of fair market value at date of death. Look at similar used items on marketplace sites or secondhand stores to establish approximate values. Take photos and save your research. For items you've already sold, document what you can now - note when each item was sold, how much you received, and your best estimate of its value when inherited. Unless these were valuable antiques or collectibles, the IRS rarely scrutinizes routine household item sales since they typically result in losses or minimal gains.

How does it handle cash sales though? I sold a bunch of stuff after my dad died and didn't keep great records of the cash transactions. Would this still work for me?

Does it actually connect with a real tax professional or is it just some AI calculator? I'm always skeptical about tax advice that's not coming from a licensed professional since the consequences of getting it wrong can be expensive.

For cash sales, it actually has a specific worksheet where you can estimate and record what you sold and approximate dates. It helps you document what you can remember and suggests reasonable values based on similar items. It's better than having nothing documented at all. The service uses AI to analyze documents and provide guidance, but they also have tax professionals who review complex situations. It's not just a calculator - it actually explains tax rules in plain language and helps you understand exactly what you need to report based on your situation. I was skeptical too until I tried it.

How does that even work? The IRS phone system is completely broken. I literally called 30+ times and could never get through.

Sorry but this sounds like a scam. Nobody can magically get through the IRS phone system. They probably just take your money and leave you on hold like everyone else.

It works by using technology that monitors the IRS phone lines and calls repeatedly using an automated system. When it detects an opening, it calls you immediately and connects you to the IRS agent. It's basically doing the redial work for you but at scale. I was super skeptical too - I thought it was either a scam or wouldn't work. But I was desperate after trying for weeks myself. It's not magic, just smart tech that navigates the phone system more efficiently than we can manually. They don't promise instant connections, but they got me through in about 40 minutes when I had completely failed on my own for weeks.

Oh that's concerning. I definitely didn't do 200 transactions, but I did sell quite a few items separately over about 2 months. Maybe 25-30 separate sales? Total was around $3,800 like I mentioned. Does that sound like it might trigger some kind of "dealer" classification?

With only 25-30 sales totaling $3,800, you should be fine. The IRS typically looks for patterns of ongoing business activity rather than one-time disposal of inherited items. Dealer status usually applies to people regularly buying and selling for profit, not someone liquidating inherited assets. Just keep basic records of what you sold and approximately when, and maybe note that these were inherited items being disposed of as a one-time event. That level of activity shouldn't raise any red flags.

Good point about improvements! Even basic stuff like painting, repairs, or fixing up the yard before selling can be added to your basis and reduce any potential gains. Keep those receipts!

Yes, I actually sold it about 14 months after inheriting it. I did do some minor repairs - fixed a leaky faucet, repainted a couple rooms, and had the carpets professionally cleaned. Total was around $2,800 for those improvements. I've kept all those receipts, so I'll definitely add those to my basis. Thanks for the reminder!

This is really solid advice! I'm dealing with a similar situation right now after inheriting my grandmother's belongings. Creating that spreadsheet sounds like a smart move - I wish I had done it right after I started selling things instead of trying to piece it together now from memory and random notes. One thing I'm curious about - for items where you genuinely can't remember exactly what you sold them for (like cash sales where you didn't write it down), is it better to estimate conservatively or try to be as accurate as possible? I sold some kitchen appliances for cash and honestly can't remember if I got $150 or $200 for the whole lot.