1. Multiple sale dates in the month.
2. Took a loss on one sale.
3. No record on Ticketmaster site of sale specific expenses, but I can allocate per gross sale.
The IRS form 1099-K gross amount in box 1a should be reported because the IRS will be receiving a copy of the 1099-K.
I would allocate selling expenses across all of the sales and retain a copy of the spreadsheet should you have to report your calculations to a taxing authority at a later time.
Selling expenses will be reported at the screen Let us know if any of these situations apply to this sale when entering the detail to the IRS form 8949. Select I paid sales expenses that aren't included in the sale proceeds reported on the form.
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.
Personal items sold for more than their basis report the gain on line 7 of the Federal 1040 tax return. See this example.
Selling Cost
Price Basis
Couch $500 $2,000 Capital loss on personal item = $0 loss
Jewelry $400 $300 Capital gain on personal item = $100 gain
Chair $100 $100 No capital gain or loss
$1,000 $2,400
Schedule D will report a $100 long term capital gain.
Federal 1040 tax return line 7 reports $100 long term capital gain.
To report Personal item sales in TurboTax Online, follow these directions.
The entry will be reported:
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.
I don’t see this option in Deluxe version. I sold some of my NFL season tickets on Ticketmaster and I received a 1099-K for the gross sales price. I can enter the 1099-k under personal property (as that’s what the TurboTax pop up says to do), but I need to be able to enter the price I paid for them so that I only pay tax on the profit. Your instructions above are not available to me in Deluxe version, do I need to upgrade or can I update the forms manually?
Sale of personal property items involves use of IRS form 8949 / Schedule D Capital Gains and Losses which is available with TurboTax Premier and above. This is what you are seeing.
These forms are used to report sales expenses and costs of sales for the sale of personal property.
To report Personal item sales in TurboTax Online, follow these directions.
The entry will be reported:
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.
I have done all the steps above, and when I get to review my entire filing, I get a "needs review" screen that I cannot get past. It says, "Loss from sale of personal property is not yet supported in this release of Turbo Tax. Support for this situation will be provided in a future release." So, it won't let me file because it doesn't seem to like the total amount of payments and payments for personal property sold at a loss to be the same (I guess).
I have the same situation as the original poster - I sold tickets at a loss on Ticketmaster and received a 1099-K. So I don't know where to go from here.
The schedule D entry should not care if the tickets that you sold were personal property or not and the tax treatment is the same. Just non-business property sold for a profit.
Delete whatever entry you have made and enter it as a sale of non-business property without a schedule 1099-B or 1099-K and make sure that the number matches the 1099-K and you're fine.
I had a small profit of roughly $400. The problem with the 1099-k from TicketMaster is that they do not report your cost basis (the price you paid plus the commission they take) because they do not know. I was able to enter my cost basis + their commission when I followed the instructions in the original reply (JamesG1) provided. This translated to the schedule D form 8949. I used deluxe, not premiere, but I did have to click on "cost basis not reported" on the form when the error popped up, and this triggered me to having to send in my form 8949 after e-filing everything else. Perhaps the premiere version would've made this a bit easier, I'm not sure. One thing though, this is a nightmare that millions of people will be experiencing because of this $600 land grab. Time to go back to cash!
You should not need to send in the details of your transactions unless you chose to enter them as a summary or by sales section totals. If you enter the transactions individually (it says something like ''I'll enter one sale at a time'') on Schedule D/Form 8949, you are not required to mail anything after e-filing. It wasn't what version you used, it was choosing the summary entry instead of the individual entry that caused you to have to mail the forms. @Mrbobwoj
Do I need to mail Form 8949? Keep this in mind in case it comes up again next year.... Don't count on the IRS to simplify anything 😉
I was thinking that was why it forced me to send it in! I'll be noting this for next year. Thank you!
I have tried this but I don't know what to put as the purchase date? I pay for my season tickets over the course of 12 months? Also I would have to enter 43 different sales so seemed very confusing. Can it be entered as self-employment income instead?
You do not need to enter a purchase date, or 43 sales if you are following Tax Expert @JamesG1’s instructions. TurboTax will only ask you to enter your Form 1099-K and the total proceeds for items sold at a loss or no gain.
If All items were sold at a loss or had no gain, you don’t have to enter any cost. TurboTax will zero out your Form 1009-K.
To report Personal item sales in TurboTax Online, 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.
Some tickets were sold at a loss or no gain, others (18 games) were sold at a profit. After I have entered everything per JamesG1 instructions when I go back to revisit...
I have to enter how I received investment, the description, when did I receive the investment, it asks for a date, or "something other than a date" then date sold, proceeds, total amount paid. It looks to me like i would have to do this 18 times for each pair of tickets sold?
You would report the 18 lines similar to the way that the three lines of information are reported below on IRS form 8949.
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.
Personal items sold for more than their basis report the gain on line 7 of the Federal 1040 tax return. See this example.
Selling Cost
Price Basis
Couch $500 $2,000 Capital loss on personal item = $0 loss
Jewelry $400 $300 Capital gain on personal item = $100 gain
Chair $100 $100 No capital gain or loss
$1,000 $2,400
The other issue I have is it asks for the purchase date...these are season tickets that auto renew, so I don't know when the actual purchase date is? It wants to know whether to charge me short or long term capital gains. I will have to do this 43 times, 18 at a profit, 3 break even and 22 at a loss.
Based on what you have previously stated, it would seem reasonable to use the date you had control over the tickets as your purchase date. You mentioned in a prior post that you pay for the tickets over a period of time; however, your control over the tickets is what matters here. While you pay for them over time, if on a given date you have the ability to sell a ticket(s), transfer a ticket(s), or otherwise give the ticket(s) away for a fee or no fee, then it seems reasonable to use that date as your purchase date.
In your situation, if at the beginning of the season, you had control over all the tickets as expressed herein, then you can use that date as your purchase date, even though you had not fully paid for all of your tickets.
Your situation is similar to an investor that buys a stock on margin (which is the brokerage industry's term for a loan). The investor still owns the stock, even though full payment has not been made. The investor can still sell the stock; however, the investor still has to make full payment.
I just finished adding all 43 sales, and yet turbotax says there is an issue with something. The profit is the correct number so I don't know what else to do with it. It says Form 1099-B Worksheet: Amount from Form 1099k has an amount from linked form 1099k but the sales proceeds in this worksheet don't match the payment amount from Form 1099K. Add sales on this worksheet with sales proceeds to match the amount reported on Form 1099k. I don't even recognize the amount it is showing, there is only one amount on the 1099k, I don't know if I need to add in expenses to the amount I received as payment instead of the actual amount and increase the cost basis by the same amount?
Can you clarify what version (online or desktop) you are using? And when you entered the 1099-K, what type of income did you select (personal items or other)? If personal items, did you get a choice to say some or all were at a loss? If so, what did you select? I think you may need to change your selection of the type of income, but I want to be sure I know what is going on - I know you don't want to reenter 43 sales! @grr8scot
I am doing this on my laptop, Yes, I sold as personal items, and yes I answered that I sold some at a loss. I have one gross total from Ticketmaster on the 1099k which includes fees and taxes that I did not pay, it does not separate these out (it even says right on the form this is not the amount you were paid). I entered what I was paid for each sale and what my cost was where there is a loss it just marks as a zero, as I can't take a loss on a personal item. The net profit total is correct but it is saying something doesn't match so I don't know if I somehow have to spread the cost of all additional fees etc across all my sale, increase the amount paid and the cost so that it adds up? The total it is telling me to match with does not even match what is on the 1099k though making it very confusing.
Are you able to view IRS form 8949 where the individual entries are located?
In the online versions, you may view or print at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets after you have paid for the software.
In the Desktop versions, one can look at the tax return by clicking FORMS, or by viewing the PDF through the Print Center.
In this example, column (d) Proceeds should equal IRS form 1099-K box 1a.
I think you are saying that your IRS form 1099-K is reporting not gross income but a net income (gross income less Ticketmaster fees charged). Is that correct?
If so, your column (d) Proceeds will have to balance back to your IRS form 1099-K box 1a. You may need to allocate the Ticketmaster fees charged across all of the items in order to report an accurate column (d) Proceeds.
No, Tickemaster is reporting only the gross amount that is related to sales of my tickets. They include seller fees, buyer fees and taxes in that gross total. There is no other data on the 1099k. It states on there that this is not the amount paid to me, the seller. So I don't know if somehow I have to enter those fees in the amount received and cost. If I check the box that says I paid fees not included in what I just reported it deducts it from the profit which then makes the net profit incorrect.
First, you can select 'something other than a date' and use a common and regular date of 'Various'. You can always use the 'V' for various in the date acquired, however you must know the holding period (one year or less = short term/more than one year = long term).
Sales that can be combined in separate categories when using Various as the purchase date:
Use the gross amount shown on the 1099-K, then add the fees (seller fees, buyer fees and taxes) as part of your cost basis. Do not check the box 'I paid fees not included in what I just reported.' This action will cancel the fees and your result will be only the actual net gain or loss for each category.
I tried adding the fees to the cost basis but it then reduced the net profit. Can I just spread the fees over the tickets that sold at a loss intead?
No, you cannot claim all the fees to some of the tickets. You would need to apply the fees to the tickets as they were incurred. The fees must match the income it produced. You are not allowed to "manipulate" fees to "manipulate" your income.
I am not manipulating the profit, the profit listed is correct. I hv no way of knowing what fees were applied to what tickets, I only know what I, as the seller paid, in fees. Buyer fees and taxes have been included in the gross amount reported by Ticketmaster on the 1099k but I have no idea how much was applied to what tickets and 3 calls to ticketmaster have not helped.