topic eBay 1099K Sales for a Loss in Deductions & credits

eBay 1099K Sales for a Loss

BWECJC — Tue, 18 Feb 2025 02:15:33 GMT

I sold a large quantity of items on eBay in 2024 for less than the purchase price resulting in a significant loss. However, eBay sent me a 1099K showing the gross payments. I have created a lengthy spreadsheet showing the item #’s, sale price, original purchase price, and some additional information regarding where purchased and receipt electronic location. How do I go about filing this information so my 1099K total is not taxed as income?

Re: eBay 1099K Sales for a Loss

NCperson — Tue, 18 Feb 2025 02:26:26 GMT

@BWECJC just follow the step x step and enter the 1099-K. at one point TT will ask if the 1099-k includes personal items and what should be excluded. (I suspect in your case the gross amount and the amount to be excluded will be the same). When you review Schedule 1, you'll see that same number listed near the top of the schedule and it will have no impact on the tax return. It's fairly straight forward.

Re: eBay 1099K Sales for a Loss

BWECJC — Tue, 18 Feb 2025 02:35:56 GMT

I tried this earlier today, but it didn’t work. TT only let me load the total value of the $1099K and then it included that value as income. I’ll reset and try again…

Re: eBay 1099K Sales for a Loss

NCperson — Thu, 15 May 2025 20:00:01 GMT

once you enter the 1099k, go slow and read the questions carefully. I am using the desktop version and it was very obvious just below where I entered the total value of the 1099k that it asked whether these were personal sales and / or sold at a loss. Then I checked Schedule 1 and the 1099k was excluded from my income.

@BWECJC

Re: eBay 1099K Sales for a Loss

BWECJC — Tue, 18 Feb 2025 03:14:33 GMT

Thanks for the advice. I reset this section and re-entered my 1099k data and it worked this time. I appreciate the help!