FORM 1099-K from selling business equipment, online. How to report (and not double-count the sales on Schedule C)

[holdsg]

Hello, I'm a freelance musician and have filed Schedule C for my musician income and expenses for years.

Dor the first time, in 2022, I am now receiving a 1099-K from an online used gear platform (reverb.com) on which I sold 5 pieces of music equipment during the year for gross proceeds of $9,025.

Normally, I would have already reported the sale of these pieces of equipment as I went through my asset summary, and I would normally have a gain on sale, because I depreciate my business equipment.

But, if I put in the 1099-K as proceeds from these 5 sales, they would be double-counted.

Do I take the proceeds from these 5 sales made on reverb.com out of my asset summary? so as to not double count the proceeds?  And if I do that, I do I not have a gain on sale?  Stumped.  

[Vanessa A · Accepted solution]

No, if you already have these sales accounted for in your normal accounting method, you do not need to enter the 1099-K, you will just keep it for your records.  

[holdsg]

thank you,

I suppose I would just have to prove (I can do that no problem) how my normal accounting methods capture the proceeds from those sales already, independently of the 1099-K. 

Appreciate the answer, and hope it can help others in similar situations.