The 1st situation @ColeenD3 posted fits your statement. If you made a profit on the sale of the items (which means your original cost was less than the $5,000 you sold it for) you report the 1099-K as Other Income. If you sold the items for a loss, you cannot take the loss as a deduction.
You can do this in TurboTax Online by following these steps:
- Within your tax return click on Income & Expenses at the top of the screen
- Scroll down to Other Common Income and click Show more
- Click Start next to Form 1099-K and enter the amount of net amount of income you received (after deducting the cost of the items and the fees from your payment processor)
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