Per pattif12 aka turbo tax expert that reponded to me... here is how we dealt with the 1099K we received when selling old personal items on ebay.
Option 2 in TurboTax Deluxe or higher: reporting it via Other Miscellaneous Income is acceptable to the IRS.
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.
For a description, include Form 1099-K and Personal Property Sales
Next, in other reportable income also, enter an adjustment to reflect the cost of these items as an offsetting, negative amount up to the amount of the income.
For the cost description, include Form 1099-K and Cost of Personal Property
In other words, if the goods cost you $100 and Form 1099-K was for $10 in sales, the maximum cost allowable would be $10.
