I received a 1099-K from an online marketplace for $9500 in gross sales of personal property (various things I've had for anywhere from 1-15 years). My cost basis (original purchase price, shipping, fees, etc.) is $5500, so my gains are $4000.
I don't believe I am a business, so should I use Option 2: reporting it via Other Miscellaneous Income to report these gains? My entries would appear as:
Form 1099-K Marketplace Name Personal Property Sales: $9500
Form 1099-K Marketplace Name Cost of Personal Property: —$5500
Alternatively, within the Forms, under Schedule 1, Line 8, item 16a is Taxable Income from Form 1099-K. Upon opening the worksheet, it will calculate the gain and enter that final number. However, I'm concerned that the reported gross number on the 1099-K and my adjustment won't be on the return to show how I came up with that number. Is this still an acceptable method?
