I received a 1099-K from PayPal for ticket sales made through Stubhub. Total proceeds were about $25,000 of which about $5000 were sold at a loss or had no gain. When entering the 1099 info in TurboTax, I noted the total amount of $25,000 as well as the $5000 for which there was no gain or a loss. The 8949 form that was generated is correct in that it shows total proceeds of $20,000 (the amounts sold at a loss or for no gain are not included). However, how will the IRS know why I am only reporting $20,000 of sales proceeds and not the $25,000 included in box 1 of the Form 1099-K? In TurboTax I did note that $5000 was for items at a loss/no gain, but I don't see where that information is included in my tax return. Do I need to do anything so that the $5000 is specifically noted as proceeds for which there is no gain or a loss in the tax return?
I'm using TurboTax desktop.
Thank you.
