Consider not posting the IRS form 1099-K and posting the sales directly to IRS form 1099-B, Schedule D and Schedule 8949.
Do you have a spreadsheet that reports your income and expenses related to each sale? I would also recommend that you round off the numbers to the nearest dollar.
Your total selling price of all of the items sold may or may not total the IRS form 1099-K that you received. The IRS may or may not question your entries. But, if they do, you have your spreadsheet that ties the sales back to the IRS form 1099-K that you received.
Sale of personal items may be reported on Schedule D IRS form 1040 and Schedule 8949.
Personal items sold for less than their cost basis (most likely, the fair market value of the item on the date of the owner's death) report $0 capital gain on line 7 of the Federal 1040 tax return.
Personal items sold for more than their cost basis report the gain on line 7 of the Federal 1040 tax return. See this example.
Selling Cost
Price Basis
Item 1 $500 $2,000 Capital loss on personal item = $0 loss
Item 2 $400 $300 Capital gain on personal item = $100 gain
Item 3 $100 $100 No capital gain or loss
$1,000 $2,400
In TurboTax Online, to report such a sale of personal items, follow these directions.
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Click to the right of Investments and Savings.
- Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
- Click Add investments.
- At the screen Let's import your tax info, select enter a different way.
- At the screen OK, let's start with one investment type, select Other, Land, Second homes, Personal items.
- Click Add another sale to post the next sale.
See also this TurboTax Help.
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