Thank you, JamesG1, for that clear answer. The third case is, in fact, how it was handled. I checked my schedule 1 and there was an entry there.
This should be the answer when clicking the help button on this topic (when entering 1099-K's). Instead, it states that there will be a corresponding entry in the investments section, which is only partially correct.
I appreciate you taking the time to clarify this issue!
Bob1358
