First time using eBay for personal items, got a 1099-K I entered the info yet need to make a correction on actual "proceeds" how can you adjust this?

[robert-keefe]

During the review of this it keeps asking about "investments"? I just sold stuff, not investments, what to do?

[KrisD15]

If all the sales were for personal items and none of them sold at a gain, you adjust for the entire amount on the 1099-K screen.

If you sold any at a gain, you need to ALSO report that sale. 

If gain or no gains-

Income

Other Common Income

Income from Form 1099-K     START

On the “Did you get a 1099-K?” screen, select “Yes”

On the “Which type of income is your 1099-K for?” screen, select “Personal item sales”     CONTINUE

Enter the 1099-K as it was reported 

NOTE: ONLY select the box for “This amount in box 1a is too high or includes some personal transactions” if it shows things like birthday gifts you received or when someone sent you money to split a dinner cost.  

CONTINUE

Next screen make a selection-

• If all the items you sold were sold at a loss or just broke-even, you would select  “All items were sold at a loss or had no gain” If ALL the items were sold and you did not realize a gain on any single item, you would not need to enter the sales .If no gain, you would be done at this point
• IF ANY ITEM SOLD AT A GAIN- select  “only some items had no gain”, and enter the amount that represent the items NOT sold for gain.

IF GAIN CONTINUE-

In other words, if the 1099-K shows 1,000 "Proceeds" and 900 of that was stuff you sold at a loss or broke-even, enter 900 here. 

In this example, you would need to "account" for 100 "proceeds".

That means 100 was sent for something you sold and you sold it for more than what you paid for it.

That does not mean you MADE 100, just that they sent you 100. You must record what you sold, what it cost you, and the profit you made. You do that later in the "Investment" section

CONTINUE

Finish the interview and select done on the “Your 1099-K summary” screen, 

BUT YOU ARE NOT DONE

Go back to:

Income

Investment Income

Stocks, Cryptocurrency, Mutual Funds, Bonds, Other    click UPDATE

The next screen should show “Personal items sales (1099-K)” 

Click REVIEW to open 

The next screen has an input screen for the Personal items you sold at a profit/gain.

Enter what you sold, when you sold it, when you purchased it

Enter how much you sold it for, and how much it cost you to buy it.

The difference between what it cost you, and what you got as "Proceeds" is the taxable profit (Capital Gains)