JamesG1
Expert Alumni

Get your taxes done using TurboTax

You want to report the full amount of the 1099-K because the IRS will be looking for that to be reported on your tax return.  

 

To report Personal item sales, follow these directions.

 

  • Down the left side of the screen, click Federal.
  • Down the left side of the screen, click Wages & Income.
  • Click Show more to the right of Other Common Income.
  • Under Your income and expenses, click the Edit/Add button to the right of Form 1099-K.
  • At the screen Did you get a 1099-K? click Yes.
  • At the screen How would you like to enter your 1099-K? click Type it in myself.  Click Continue.
  • At the screen Choose which type of income your 1099-K is for, select the button for Personal item sales.  Click Continue.
  • At the screen Let’s get the info from your 1099-K, enter the information.  Click Continue.
  • At the screen Personal Item Sales, you are told that further information will need to be entered.  Learn More provides detailed information for the next steps.  Click Continue.
  • At the screen Your 1099-K summary, notice that the income relates to ‘Sale of Personal Items’.  Click Done.
  • Under Your income and expenses, click the Edit/Add button to the right of Investments and Savings (1099-B, 1099-K….)
  • At this screen, you will be asked to Review the Personal item sales (1099-K).

At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.

The entry will be reported:

  • on Schedule D of the Federal 1040 tax return, and
  • on line 7 of the Federal 1040 tax return.

Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.

 

Make sure that you keep records of all transactions. Later, you may need to demonstrate to the IRS that this is not taxable income.

 

[Edited 2/5/2023 | 10:41 am PST]

 

@bkgrant10 

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