Many older Americans are coming to a stage of life where they want to downsize where they live and get the clutter out of the house. This often means getting rid of items inherited from their own parents and other relative. While a person may consider an item an antique or family heirloom of great value, the selling of the piece may or may not be a taxable event in the eyes of the IRS.

The down and dirty rule of thumb is this: If the item was sold for more than the purchase price, then Uncle Sam wants his cut.

If you inherited the item, then you would need to value it on the date of the donor's death. If the donor gave it to you as a gift while alive, then you would assume their purchase price and calculate the taxes owed. Since most of us would be unable to even guesstimate the cost basis, it might be necessary to hire an appraiser.

Your gain would probably be considered long term, capping out at 28%.

But if you're not dealing with a real antique or you sell it at a loss, no taxes would be due. That what makes garage sales so wonderful.