Investors & landlords
There is no flaw for this type of income. Answers to the questions is key, however hobby income is reported as indicated and you should have no reservation.
The answers to the questions make a difference on how it's reported. If you enter through the 1099-MISC, then there are specific questions that want to send it to Schedule C and possibly Schedule D. It's not clear what exactly was sold.
Personal Items: If sold at a gain go to sale of investments and not entered through the 1099-MISC section.
Hobby: Options to report under 1099-MISC as 'Other Income' or using the steps provided, however if you answer the following questions with a 'Yes' it will go to Schedule C for self employment.
- It's important to answer the following questions 'No' if this is not self employment income.
- Did this involve work that's like my main job?
- No, for the question Did this involve an intent to earn money?
Box 2 is for royalty income. If this is a royalty, then it is reported on Schedule E. You would select the check box for Royalty investment income....., then a notation directing you back to select Rentals and Royalties to enter any appropriate expenses.
It is important for you to be clear on how to report the income. The Form 1099-MISC is used for many types of income, however your income is from a hobby. Here are steps to enter it as hobby income.
Other Miscellaneous Income:
- Go to the Wages and Income section of TurboTax
- Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
- Select Hobby or Other reportable Income > Enter a description (----) and the amount
