1099-k help please!

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I received a 1099-k for 30 pairs of shoes I sold from my old collection as I am downsizing. The 1099-k was for 6,700 BUT i actually lost 300 for the year. My COGS was 6,300. I would think i shouldn't have to pay ANY TAX since my NET was a loss however I entered this 2 different ways in turbo (as personal items) then as self employed deducting the COGS, home office etc.. BOTH WAYS, it is taxing me MORE then before I entered the 1099-K at all. How do I truly ZERO out my 1099-k so I'M not paying tax on any of it?, when I did "personal sales at loss and gain" it taxed my gains but since you Can't deduct losses for personal items sold in the end i was paying tax even though I took a loss. That seems wrong. PLEASE HELP! Ice spent hours on this. THANKS!!!!

TurboTax Deluxe Online

RobertB4444Answer

Alumni - Intuit

Can anyone answer my last follow up question here please? Thanks!

Yes, you have to pay tax even though you lost money.

Each sneaker sale is a separate sale.

The ones where you made a profit you have to pay tax on.

You can't deduct the ones where you made a loss.

Entering this as a personal sale means you owe taxes.

@JJ161

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MindyB

Level 13

Yes, you are correct, you should not be paying any tax.

First, I recommend deleting all entries related to the 1099-K you have already entered. ‌Check 1. 1099-K input, 2. Self-employment income & expenses and 3. Investments and Savings for any data related to the 1099-K and delete.

Next, follow these steps in TurboTax Online:

Within your tax return go to the magnifying glass icon on the top right, type 1099-K and select the Jump to 1099-K link in the search results
Choose Add a 1099-K
The next screen will ask "Which type of income your 1099-K is for?" choose Personal item sales, then Continue
Enter the information from your 1099-K
After you choose continue, the next screen will show "Personal Item Sales". Here is where you choose "All items were sold at a loss or had no gain"

JJ161Author

Level 2

Thanks Mindy! So even though 10 of the 30 items were sold at a "gain", I'm still ok to just select "all items sold at a loss" and move on?

Also, I read a bunch of places that you can get into IRS trouble if you report it as a "summary" netting in your losses and gains? Isn't that what i would be doing here? Do I still have to enter each of the 30 items separately showing what i paid and sold each for? That is what made me pay tax before when i did that. Sorry for the extra questions and I really appreciate your help, advise and time! Thx!

JamesG1

Alumni - Intuit

Consider this example where the gross sales reported on the IRS form 1099-K is $900 and only these two sales transactions are involved. Report the entire $900 on the IRS form 1099-K.

Selling Cost

Price Basis

T 1 $500 $1,000 Capital loss on personal item = $0 gain/loss

T 2 $400 $300 Capital gain on personal item = $100 gain

$900 $1,300

At the screen Personal Item Sales, under I sold some items at a loss or had no gain, report $500.