There is another area in Less Common Income to capture these details.
If you are not on eBay as a trade or business, the IRS allows you to offset the income with the cost of the items sold to the extent of your earnings. In other words, if you purchased an item for $100 and later sold it for $10, then report the $10 income and offset it with only $10 of expense.
To do this in TurboTax, follow these steps:
- From the left menu, go to Federal and select the first tab, Wages & Income
- Add more income by scrolling down to the last option, Less Common Income, and Show more
- Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
- Choose the last option, Other reportable income and Start and Yes
- Enter the applicable description and amount and Continue
- First, enter Form 1099-K as received. It is essential that the full amount be entered.
- Next, enter an adjustment to reflect the cost of these items as an offsetting, negative amount.
