Late Friday night (after the posts above) the IRS issued revised instructions for Form 1040 with new instructions for reporting the sale of personal items at a loss. Of course, since the IRS just issued this late Friday, TurboTax has not yet implemented the new IRS instructions. That's going to take a while. So just wait and don't worry about it.
Basically the IRS instructions are to report the 1099-K income as other income on Schedule 1 line 8z, with an offsetting adjustment on Schedule 1 line 24z. The description for both entries would be "Form 1099-K Personal Item Sold at a Loss."
@az148 wrote:
Some say to list it as other income on Schedule 1, but I don't that's correct b/c everything on Schedule 1 is taxable.
Only the things in Part I of Schedule 1 are taxable. The Adjustments to Income in Part II of Schedule 1 reduce your AGI and your taxable income.
