There are two steps to the process of reporting an IRS form 1099-K with personal items sales. First you complete entering the IRS form 1099-K information.
- 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. Click Continue.
- At the screen Your 1099-K summary, notice that the income relates to ‘Personal Items’. Click Done.
Then you go to the IRS form 1099-K where cost of sales and selling expenses are reported.
- At the screen Your income and expenses, scroll down to Investments and Savings (1099-B, 1099-K….). Click the down arrow.
- Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
- At this screen, you will be asked to Review the Personal item sales (1099-K). Click Review.
- At the screen Now, enter one sale…., answer questions about the personal item sale. Click Continue.
- 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.
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