@MichaelG81
Thank you for your reply. Unfortunately, it does not solve the issue. The Help/FAQ both you and @JosephS1 quoted, in point #5 states:
"Be sure to select Personal Items under the What type of investment did you sell?"
There is no such "Personal Items" setting in the "Tell us about this sale" dialog. The only entries that can be made are proceeds, cost basis, holding period, and adjustments (only showing up if a "summary of each category" is selected).
Moreover, the Help/FAQ instruction
"The Cost or other basis amount should be the amount you originally paid for the item."
is incorrect. If an item was originally bought for $100 and sold for $40, then if $100 is entered for the cost basis this would result in a $60 loss that the IRS says is not deductible. See the example using lines 8z/24z in the Revised 2022 Instructions for Form 1040 (and 1040-SR) you referenced. It removes this problem, which is why it is a preferred approach. That is why Intuit should fix TT to allow entering the description and amount in Schedule 1 line 24z.
Now, when going the 1099-K reporting route, there might be a workaround: Check the "I have adjustments to enter for sales in this summary" and then enter a positive amount ($60 in the above example) that brings the non-deductible loss to zero. But it is unclear what adjustment code to enter for that; I am guessing L (see page 9 of Instructions for Form 8949). Is that a right approach?
