Okay, so, in 2024 I had online sales of personal items (bought a long time ago, cleaning out house, reducing storage costs) surpassing the threshold, and was issued a 1099-K.
Looking at the 1099K, I had to find that the number reported to the IRS is gross sales, before refunds, sales fees, and shipping costs. So, I built an Excel spreadsheet with the sales (44 in total), calculating the numbers, adding the purchase costs for each. About half of these were effectively sold at a loss (didn't buy to make a profit, and didn't). I entered each sale and all of the information in the detailed section (turbotax noting that losses aren't deductible).
Problem is that I am asked (under Wages and Income 1099-K), for personal item sales, if I sold some items at a loss or gain. Since I had that detailed Excel, I was able to separate out the gross proceeds for the items sold at a loss (included in the total the IRS knows about). Fine... but when I then ran the smart check at the end of the federal return, I got an error in the Form 1099-B worksheet telling me that the Form 1099-K reconciliation is off ("total sales proceeds must match the amount shown below"), ie the gross proceeds number is off. Unless I am misunderstanding something here, this means that either all items must be sold at a profit or all items sold at a loss. So now I see only one option: I incorrectly state 100% of the gross proceeds were sold at a loss or no gain (then the smart check error should go away). Otherwise I am sure that this will be flagged at the IRS in my return.
