Researched but can't find a definite answer. 2020 brought big changes, I decided to live a minimal life and follow a dream. I have acquired a lot of musical equipment over the years, and I am looking to sell most of it on eBay. I plan on selling this in August and September of this year.
I have always been a W2 employee with simple tax returns - never owned a business or been independently employed.
These sales will most definitely throw me over the 200 item and $20,000 threshold. But I will be selling at a loss, and there will be no profits made. I have read in some places don't bother reporting it, but that makes me uncomfortable getting a 1099-k and not reporting it.
From what a friend told me, I should put this under less common income. To put it as misc. Income, other reportable income. From there I should put my 1099-k as I got it, then add a new line for the same amount but negative called "Cost of Personal Property".
Can someone confirm if this is correct, or what route I should take? I want to unload my belongings at a loss and do things fairly, without the IRS eventually contacting me.
Thanks!
