Removed cabinetry from a house I bought and sold it (the cabinets). I would guess I sold the cabinets at below appraised value, but I don't know how I would know for sure.
That said, the buyer just asked for a sales receipt since they're using the cabinets in a rental property.
- Can I just jot down the sale on a piece of paper and sign it? Do I need a tax ID?
- Will I owe taxes on the sale? If not, do I still need to report the sale on my taxes?
You only need a tax ID if the sale is subject to sales tax. You don't specify your state, but many states with sales tax have an "occasional sales" exceptions.
See above for sales taxes. For income taxes, if you bought the house for personal use, then the cabinets are considered "personal use" property; you might need to report the sale, but there's no income or loss reported for sales of personal property at a loss. Hence, if you sold the cabinets for less than your basis (generally, if the purchase was at a fair price, the value of the cabinets when you bought the property), there is no tax reporting required.
If/when you sell the house, a case could be made for including the proceeds of this sale with the total sale price, or you might need to reduce the basis of the property by the basis allocated to the cabinets.
-- Arthur L. Rubin, CRTP, AFSP, Brea, CA
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