Get your taxes done using TurboTax

No, you have to report it, but you can deduct it on the following line so it nets out to zero on your return. Please note that you cannot deduct a loss from selling personal items. 

To report and offset the cost, please follow these steps:

1. From the top menu, go to Federal Taxes.
2. Click on Wages & Income.
3. Pick the option I'll choose what I work on.
4. Scroll down to the last option, Less Common Income.
5. Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start.
6. Choose the last option, Other reportable income and Start and Yes.
7. 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, 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 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.

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