Get your taxes done using TurboTax
First, massive thanks to hcmetz for reporting this and seeking (unsuccessfully?) resolution to this 1099K issue.
Second, I hereby note a disclaimer for the solution I found that worked around TurboTax's "bug" - I have no idea if this will work with the IRS - but they get their capital gains taxes, so I think they are OK.
Thirdly, I won't go into any background detail of how I ran into this issue - it is exactly the same as hcmetz who described the issue very nicely above - TurboTax reporting a "mismatch" in totals reported on 1099K/1099B when you are saying that not all items were sold at a loss.
So I initially reported that "not all items were sold at a loss" and then I filled out detail of each item with a capital gain on a "Form 1099-B Wks" worksheet - you can see this in Forms view. I did everything correctly I think but received the "mismatch" error.
To work around this, I then went back to the Personal Income/Other Common Income/1099K section and clicked Update, and this time, I listed the full gross amount of the sales to match the 1099B reported by the vendor, and chose "All items were sold at a loss or no gain". Yes, some had a gain, so this is not accurate. However, what happend next fixed the "mismatch" error, I believe.
Then when I ran the Smart Check, I got 4 errors initially - for the 4 items in the worksheet, it gave me a choice (paraprasing) "Was the basis reported to the IRS?", to which I answered "No" for all items - I didn't tell the vendor what the basis was, so they couldn't report to the IRS. Rerunning Smart Check, I then got 4 addition errors - "Was this reported to the IRS on a Form 1099B", to which I answered "Yes" for all items - because I received a 1099B and I'm sure the IRS got one too.
After doing this, Smart Check ran correctly and the final check before submitting passed without a "mismatch" error.
Now I think this is fine because TurboTax calculated the same abount of taxes owed for these capital gains whether I checked "All items sold at a loss" or not. So the IRS has their money, and I reported capital gains accurately, but maybe there is a slight discrepancy with a checkbox that doesn't make sense.
I will attempt to attach my worksheet here with the 2 key Yes/No questions highlighted in Green - Basis reported to IRS = No, Reported on Form 1099B = Yes.
I hope this helps!
