To report Personal item sales in TurboTax Desktop, follow these directions.
- Click on Start to the right of Income from Form 1099-K.
- Select Personal Item Sales. Click Continue.
- Enter 1099-K 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.
- Click Start to the right of Stocks, Mutual Funds, Bonds....
- At this screen, you will be asked to Edit the Personal item sales (1099-K).
- At the screen Select any less common adjustments that apply, select Any loss from this sale is not deductible.... Continue.
- At the screen Here's all the sales reported...., Click Add to add additional lines as needed.
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 retain any information about the items sold should you be required to demonstrate to the IRS that this is not taxable income.
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