Hello,
Turbo Tax Deluxe for Windows user here.
I sold two items on eBay for a total of $1,300 and made a $230 profit after expenses. I received a 1099‑K from eBay and entered the gross amount from Line 1a in TurboTax under Wages & Income → Income from 1099‑K. When asked, “What type of income is your 1099‑K for?”, I selected Personal item sales – Money made from selling your personal property (like concert tickets or furniture).
After entering all the required 1099‑K details, TurboTax brought me to the screen:
Personal Item Sales → “We’ve added your personal item sales. You’ll need to enter additional information for your sale in another section.”
It then asks:
“Enter the total proceeds for items sold at a loss.”
1)I sold some items at a loss or had no gain
2) All items were sold at a loss or had no gain
This is where the confusion starts. To report the gain correctly, I have to choose “All items were sold at a loss or had no gain” so that TurboTax will let me report the gain under:
Investment Income → Stocks, Crypto, Mutual Funds, Bonds, Other → Personal Items
From there, I entered the remaining details, and TurboTax reports the gain without creating a Schedule C or triggering self‑employment tax and generated the Schedule D which appears to be the correct treatment for occasional personal‑item sales.
Given this workflow, should TurboTax consider improving the wording on the “sold at a loss or had no gain” section? As written, it’s misleading for users who actually have a gain to report. Thoughts?
