Home loans

Let's review.  If I understand you have sales of inherited property, personal items (other than inherited) and business income.  All of the income will be reported on your tax return but not all of it will or should be entered under the 1099-K entry in your situation.

• Long term gains, defined as those held for longer than one year, generally have more advantageous tax characteristics than short-term gains, which are held for one year or less.

Business Income:

The business income must be entered under the Business section of your tax return.  Once you are on the Business section add the business portion of the income from your 1099-K in your self employment activity. 

TurboTax Desktop (H&B):

• Business Tab > Business Income and Expenses > I'll choose what I work on > Update beside Profit or Loss from Business > Edit beside your business > Update beside Business Income
• Select Update or Start beside General Business Income > enter the business amount only from your 1099-K.  Do NOT enter that amount in any other section.

Inherited Items: Enter under Investment Income and not 1099-K field

• Personal Tab > Personal Income > I'll choose what I work on > Stocks, Mutual Funds, Bonds, Other > Update or Start > Edit beside your sale or Add More Sales > You can choose one sale at a time or a summary of your sales of inherited items.  
• A gain or loss is allowed on the sale of these items because they were inherited.  Inherited property is always considered to be held long term so you can use 'Various' as the acquired date, then select a Holding Period of Long Term > Enter the date of sale or 12/31/2022 if you use one summary total of only the inherited sales portion of the 1099-K.  
• Otherwise enter the actual sale date for each sale.
• Your cost will be the value on the date of death of the person you inherited the items from.  If it is close to the sale date then your cost could be similar to the selling price.

Personal Items: This can be entered under the 1099-K field.  A loss is not allowed, but a gain is taxable (also see the note below).  If all of these items were sold at a loss then the only entry you need will be here.

• Personal Tab > Personal Income > I'll choose what I work on > Other Common Income > Income from Form 1099-K > Start or Update > Add a 1099-K or Edit
• Select Personal Item sales > Continue > Enter the information requested-only the personal sale portion should be entered in Box 1a > Continue > Select the appropriate statement and enter the proceeds again for the items sold at a loss or had no gain. If this is your only entry for the personal sales you are finished.
• If you do have any personal item sales at a gain in separate transactions then you will follow the steps for Inherited Items except you select short term or long term holding periods based on the time you actually owned the items.

NOTE: One personal item or a group of personal items sold in one transaction at a gain requires the gain to be taxed. 

One personal item or a group of personal items in one transaction sold at a loss, the loss is suspended and not allowed to reduce or offset other income, even the gain on personal items sold in a different transaction.

Please update if you have more questions and one of your tax experts can help.

@CombatWombat