Are you reporting personal items sales? If that is your intent, there is a two-step process.
First, the IRS form 1099-K is entered reporting the gross income received.
Second, and entry on IRS form 1099-B is made to report the same income received, the cost basis of the item sold, dates of purchase and sale and costs of sale.
The prompts to check the IRS form 1099-B are asking you to perform the second step. The following may be helpful.
- At the screen Your income and expenses, scroll down to Investments and Savings (1099-B, 1099-K….). Click the down arrow.
- To the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), select Start/Revisit.
- At this screen, you will be asked to Review the Personal item sales (1099-K). You may have to click the down arrow to the right, then click Edit.
- At the screen Review your 1099-B, click the pencil to the right.
- At the screen Now, enter one sale…., answer questions about the personal item sale. Click Continue.
- At the screen, Let us know if any of these situations apply to this sale, sales expenses may be recorded.
The entry will be reported:
- on Schedule D of the Federal 1040 tax return, and
- on line 7 of the Federal 1040 tax return.
Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
