If you know that each item was sold at a loss and you have the detail to back that up, you are not required to report income you did not receive. In this case, because the items were personal use, you are also not allowed to report a loss that would reduce other taxable income.
Another way to report the sales is shown below after deleting the Form 1099-K.
- If you're using TurboTax Online software and need to delete a form, click here.
- If you're using TurboTax Desktop software and need to delete a form, click here.
Next, enter your 1099-K as follows by entering the total as your sales proceeds and the cost basis the same number, showing zero gain or loss.
To enter your sale in TurboTax, follow these steps.
- Open or continue your return.
- Navigate to the investment sales section:
- TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
- TurboTax Desktop: Search for investment sales and then select the Jump to link.
- Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
- Answer Yes to the question Did you sell any of these investments in 2024?.
- If you land on the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.
- Click this link for more information. Where do I enter Investment Sales?
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