what type of items personal or business? if a business you'll need to amend and prepare a schedule C. if personal the IRS says you have 2 options:
A loss on the sale of a personal item can't be deducted from your taxes. But you can zero out the reported gross income so you don't pay taxes on it.
1) Report on Schedule 1 (Form 1040)
You can report and then zero out the Form 1099-K gross payment amount on Schedule 1 (Form 1040), Additional Income and Adjustments to Income.
Example: You receive a Form 1099-K that includes the sale of your car online for $21,000, which is less than you paid for it.
On Schedule 1 (Form 1040):
Enter the Form 1099-K gross payment amount (Box 1a) on Part I – Line 8z – Other Income: "Form 1099-K Personal Item Sold at a Loss, $21,000"
Offset the Form 1099-K gross payment amount (Box 1a) on Part II – Line 24z – Other Adjustments: "Form 1099-K Personal Item Sold at a Loss $21,000"
These 2 entries result in a $0 net effect on your adjusted gross income (AGI).
2) Report on Form 8949
You can also report the loss on Form 8949, Sales and Other Dispositions of Capital Assets, which carries to Schedule D, Capital Gains and Losses. describe as "Form 1099-K personal items sold at a loss". use the same amount for sales proceeds and cost for type use "F"
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if you sold some personal items at a gain and some at a loss
the gain items are reported on schedule D and the gain is taxable while for those sold at a loss, I would use schedule D so the proceeds tie to the 1099K except these are reported on a separate line and like above your sales proceed and cost are the same.
