Simple Camera Biz Related Question - TAXES

I closed my biz this year, and though I am working on registering a new name and starting a new DBA, during 2008 I have had to sell 2 of my cameras, and a few good lenses.

My simple question is, if anyone has specific experience, do I need to report the money I received when I sold those items as Income on my Schedule C (sole proprietor) for my taxes this year?...

I've lost all sorts of things, and an HR Block rep told me that while supplies are expenses, that sold equipment (even though it was to recover money), is considered pure income.

Anyone know enough to comment on their impressions?

Cheers,

Sounds true to me. However you should have depreciated the equipment when you purchased it. Assuming the value decreased over time you should be ahead on the deal. If you did not depreciate the items you may want to refile the previous years taxes. But it may not really be worth it depending on how big a hit you will take on the income.

Thanks Eric. I ended up putting the amount as income, and it did not seem to affect the rest of the paperwork much.

I would think it would only be income if you had previously deducted it. Otherwise, your basis in it would be higher than your sales price (assuming they sold used for less than you originally paid) and you took a loss on it.