The TurboTax program has gone through several updates this season to accommodate Form 1099-K.
The sales from the 1099-K had been continued onto Schedule D, however this flow in TurboTax seems to have been altered.
Personal items CANNOT generate a loss on your tax return. The IRS does NOT allow you to take a loss on the sale of personal items. You are only allowed to claim a loss if you are a business, or the loss is from an investment vehicle.
Please delete the entries you made for that 1099-K
Only enter the 1099-K from Ebay reporting sale of personal items at a loss under
Personal Income
Other Common Income
Income from 1099-K
Be sure to select "Personal item sales" on the "Choose which type of income your 1099-K is for" screen
Enter the information reported on the 1099-K
Select "All items were sold at a loss or had no gain"
Continue
That is all that needs to be done for a 1099-K reporting sale of Personal items when there is no gain to report.
IF ANY PERSONAL ITEM DID SELL AT A GAIN, you would need to select the other option "I sold some items at a loss or had no gain"
In this case, you would continue to the "Investment Income" section and report the gain realized on those particular items.
Again, only for personal items sold at a gain do you report the gain. Unlike traditional investments, when selling personal items, losses do NOT offset gain.
@viguejt
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