Bill, Thank you for calling me a nice guy. Not too many people do that. However, according to the IRS most property you own and use for personal purposes, pleasure or investment is a capital asset. For example your house, furniture, car, stocks and bonds are capital assets..any property held by you except that used in a trade or business. Basis is the amount of your investment in property for tax purposes. You need to know your basis to figure any gain or loss on the sale or other disposition of the property. You must keep accurate records that show the basis and adjusted basis of your property. Your records should show the purchase price, including commissions, increases to basis, such as the cost of improvements and decreases to basis, such as depreciation.
The Govt. does not spend the time or energy worrying about your lawn tractor, Land Rover tires etc. all in which you can generally show considerable depreciation, or selling a gun every now and then. Disposing of a high vauled gun collection in one full swoop may be a different story. JMHO.
