I dealt with this exact same issue as a result of selling two guitars at a small loss via PayPal. I followed the instructions and I hope I got everything right. In order to follow them, I had to upgrade my TurboTax subscription. That seemed to be the only way to enter the info about the individual items on the 1099-K. I don't see the 1099-K income reflected anywhere in my return document, but I do see the losses I entered in the Schedule D section. The UI/UX for 1099-K is one of the more frustrating experiences I've had on a website in recent memory. If I have another 1099-K next year, I may just hire an accountant so I can be confident that things will be done correctly.
