Income resulting from auctions akin to an occasional garage or yard sale is generally not required to be reported. However, there may be exceptions. If an online garage sale turns into a business with recurring sales and purchasing of items for resale, it may be considered an online auction business.
Refer to IRS Fact Sheet
Since you've done this for a while, it does sound like a business. If you do not wish to take the time to research the cost of the items, you can elect to pay the tax on the full sale price.
To enter the 1099-K
- Enter it under the Wages & Income
- Scroll down to Miscellaneous Income = Start
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Choose Other reportable income
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Answer Yes to "Any Other Taxable Income?"
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Under Description put "1099-K Personal Property Sales "
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Enter the amount from the 1099-K in the next box and click continue
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Click on "add another income item",
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Under Description this time put "1099-K Cost of Personal Property"
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Enter the amount if you choose to
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Be sure to link to your business
Note: The IRS will not allow you to deduct a loss on personal items that you sell.
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