Get your taxes done using TurboTax

Perhaps an example of a gain and a loss would be helpful.

When you enter the sales information, you will want to click the button to report the loss on sale of a personal item.  Personal items sold for less than their cost basis (most likely, the original purchase price) report $0 capital gain on line 7 of the Federal 1040 tax return.

Personal items sold for more than their cost basis report the gain on line 7 of the Federal 1040 tax return.  See this example.

                           Selling           Cost

                           Price              Basis

Tix 1                   $500              $1,000        Capital loss on personal item = $0 gain/loss

Tix 2                   $400               $300          Capital gain on personal item = $100 gain

Tix 3                   $100               $100          No capital gain or loss              = $0 gain/loss

                            $1,000           $1,400

To report Personal item sales, follow these directions.

1. Across the top of the screen, click Federal Taxes.
2. Across the top of the screen, click Wages & Income.
3. Click I'll choose what I work on.
4. Click to the right of Income from Form 1099-K.
5. Did you get a 1099-K?  Click Yes.
6. At the screen Which type of income is your 1099-K for, select the button for Personal item sales.  Click Continue.
7. At the screen Let's get the info from your 1099-K, enter the information.      Click Continue.
8. Because $600 of the selling price will not be reported, enter $600 under I sold some items at a loss or had no gain. 
9. At Your 1099-K Summary select Done.
10. At the screen Your 2024 Income Summary, scroll down to Investment Income.  Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
11. At this screen, you will be asked to Review the Personal item sales (1099-K).  Select Review.
12.  
13. At the screen Now, enter one sale…., answer questions about the personal item sale.  
14. Because you are only reporting the gain transaction, report $400 as Proceeds and $300 as Total amount paid.
15. Click Continue.
16. At the screen, Let us know if any of these situations apply to this sale, sales expenses may be recorded.

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.

@Shig2