This is the best answer I've seen yet on the subject! Thank goodness. I've seen two schools of thought in the TT forum. Either 1) Enter as 1099-MISC, or 2) enter as less common income, 1099-A or 1099-C.
Regarding suggestion 1): If you just put it down as MISC income, you have to answer yes or no to whether you intended to make money. Of course you intended to make money! Just like when you earn interest anywhere. But saying "yes" to the intent question taxes it like earned income with the attendant taxes. Boo hiss. If you choose option 2), you need to ignore the TurboTax warning "Do not enter income reported on Form 1099-MISC."(Emphasis is Turbotax's.)
KrisD15's answer is awesome.
