Yes, it is acceptable to claim ordinary and necessary related expenses in a sale of personal property. However, these cards are more like collectibles. Reporting it as an investment sale will allow a subtraction up to the cost of the sale. To do this in TurboTax, follow these steps:
- In TurboTax Premier or higher: report Form 1099-K as investment income
- Go to the search box and enter Investment Sales
- Select Jump to Investment Sales
- Select Other at the next screen, OK, what type of investments did you sell? and click Continue
- At Tell us more about this sale, enter in the name, such as Form 1099-K and the Payer's EIN and click Continue
- At Now we'll walk you through entering your sale details, under the first dropdown menu, What type of investment did you sell? Select Personal Items
- Answer How did you receive this investment with an option from the dropdown menu.
- Enter the Description. If you are uncertain what date you purchased the goods, select Something other than a date so that TurboTax will enter Various
- Next, enter your Sale Proceeds and an equal amount for the Total Amount Paid and click Continue
- Select None of these apply at Let us know if any of these situations apply to this sale and Continue
- Continue through the rest of the prompts
- Select Add another sale to add the next Form received
