I sold 679.73 on eBay in 2022 across 46 transactions and received a 1099-K. Do I have to report each transaction separately in the "Your investments and savings" section?

[spiffymere]

I just wanted to add that I have read this article https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-tax-filing-factsheet-for-ebay-sellers/L... and I am someone who would fall under the "hosting an online garage sale" category. Do I even need to report my 1099-K at all?

[JamesG1 · Accepted solution]

The IRS form 1099-K should be reported because the IRS will be receiving a copy of the 1099-K.  

Did you sell 46 personal items?  How much detail did you receive with the 1099-K or from Ebay?  How much detail did you retain should you be required to demonstrate what the 46 items were?

I would be inclined to report one entry to IRS form 8949 / Schedule D, the entry to the right of Investments and Savings (1099-B, 1099-K….). Especially, if I knew that the 46 items were all sold for less than the original purchase price.

Personal items sold for less than their basis (most likely, the original purchase price) report $0 capital gain on line 7 of the Federal 1040 tax return.

To report Personal item sales, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click Show more to the right of Other Common Income.
• Under Your income and expenses, click the Edit/Add button to the right of Form 1099-K.
• At the screen Did you get a 1099-K? click Yes.
• At the screen How would you like to enter your 1099-K? click Type it in myself.  Click Continue.
• At the screen Choose which type of income your 1099-K is for, select the button for Personal item sales.  Click Continue.
• At the screen Let’s get the info from your 1099-K, enter the information.      Click Continue.
• At the screen Personal Item Sales, you are told that further information will need to be entered.  Learn More provides detailed information for the next steps.  Click Continue.
• At the screen Your 1099-K summary, notice that the income relates to ‘Sale of Personal Items’.  Click Done.
• Under Your income and expenses, click the Edit/Add button to the right of Investments and Savings (1099-B, 1099-K….)
• At this screen, you will be asked to Review the Personal item sales (1099-K).
• At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.

The entry will be reported:

• on Schedule D of the Federal 1040 tax return, and 
• on line 7 of the Federal 1040 tax return.

Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.

Make sure that you retain any information about the items sold should you be required to demonstrate to the IRS that this is not taxable income.

@spiffymere

[spiffymere]

That was very helpful, thank you!