You will need to file this with your return since Virginia and other states have lowered the reporting requirements. You will be able to enter your cost, so that this will not be taxable to you.
To report this income:
- Go to Federal and select
- Scroll down to the last option, Less Common Income, and Show More
- Go to Miscellaneous Income, 1099-A, 1099-C and Start
- Choose Other reportable income and Start and Yes
- Enter the description and amount and Continue
- Enter the Form 1099-K as received with the full amount
- Enter an adjustment amount that shows the cost of the items that were sold to offset the income received
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